I just went through this exact situation and I'm still in shock at how complicated it all is! 😱 • The IRS has MILLIONS of backlogged returns • They're STILL catching up from COVID delays • Some returns get randomly flagged for review • The same form can be sent MULTIPLE times (happened to me too!) • You should DEFINITELY still file this year's taxes • Your new return might actually help resolve the old one • I learned all this after hours of research I never imagined taxes could be this complicated! It's like you need a PhD just to get your own money back! 🤯

I'm so sorry you're going through this nightmare! As someone who's dealt with IRS delays before, I completely understand your frustration. Here's what I'd recommend based on what others have shared: 1. **File your 2023 taxes on time** - Don't let fear of the old issue create new problems. The IRS processes each year separately. 2. **Get your tax transcript ASAP** - This will show you exactly what codes are on your account and why your refund is stuck. You can access it online through the IRS website. 3. **Document everything** - Keep copies of those duplicate 60-day notices and note the dates you received them. 4. **Consider the Taxpayer Advocate Service** - If this is causing financial hardship, you can file Form 911 to get additional help navigating the system. The fact that you received the same paperwork twice suggests there might be a processing error on their end. When you do get through to someone, make sure to mention this duplication - it could be key to resolving your case. You worked hard for that money and you deserve to get it back! Don't give up - there are people here who've successfully resolved similar situations. 💪

Has anyone dealt with unclaimed refunds for a deceased person? My cousin passed 3 years ago and we just found out he was owed a big refund that was never claimed. Is there a process for that?

I'm dealing with a similar situation right now with my father's estate. One thing I learned is that even if no one files the return, the IRS penalty for late filing is actually reduced to zero if no taxes are owed. However, if your uncle was self-employed, there's a good chance he might owe self-employment taxes even if his income was low. You might want to start by gathering any 1099s or other tax documents that might have been mailed to his address. If he was doing consulting work, clients who paid him more than $600 should have sent 1099-NEC forms. The IRS gets copies of these too, so they'll know about that income even if no return is filed. Also, check if your state has any separate filing requirements for deceased persons - some states have different rules than the federal government. It's usually worth filing even if you think he didn't owe anything, just to close out his tax obligations cleanly.

I'm actually an inventory specialist for an e-commerce company, and we deal with this kind of thing all the time. One thing nobody mentioned - you should also check if your accounting software has an "inventory adjustment" feature that can help document this change properly in your books.

One thing I'd add that hasn't been mentioned yet - make sure you implement better inventory tracking procedures going forward to prevent this from happening again. I learned this the hard way after dealing with a similar issue. Consider doing quarterly mini-counts of your high-value or fast-moving items instead of waiting for year-end. Also, if you're using spreadsheets to track inventory, consider upgrading to proper inventory management software that integrates with your accounting system. The peace of mind from accurate counts is worth the investment. The IRS tends to be more understanding when they can see you've taken steps to improve your processes after discovering an error. Document any new procedures you put in place - it shows good faith effort and professional growth as a business owner.

Just wanted to add some clarity on the $300 threshold that's been mentioned - this is specifically for the "de minimis" rule under IRC Section 904(j). You can elect to claim foreign taxes as a deduction instead of a credit if you're under this threshold, OR you can still choose to claim them as a credit on Schedule 3 without filing Form 1116. One thing to watch out for though - if you have foreign taxes from sources like foreign mutual funds or PFICs (Passive Foreign Investment Companies), those have different rules and may require Form 1116 regardless of the amount. Most regular brokerage dividends from foreign stocks won't fall into this category, but it's worth double-checking your investment statements. Also, if you're planning to carry forward any excess foreign tax credits to future years, you'll need to file Form 1116 even if you're under the threshold, since the simplified method doesn't allow for carryforwards.

I've been dealing with Form 1116 for a few years now and wanted to share some additional tips that might help others avoid common mistakes I made early on. One thing that tripped me up initially was the timing aspect - you need to use the foreign taxes that were actually withheld during the tax year, not when you received the dividend. This usually aligns, but sometimes there can be delays in reporting that create confusion. Also, if you're using the simplified Schedule 3 method (under the $300/$600 threshold), make sure you're not double-counting. Some people accidentally claim the same foreign taxes both as a deduction (if they itemize) and as a credit, which will definitely get flagged. For those with more complex situations, I'd recommend keeping a simple spreadsheet throughout the year tracking: date, country, type of income, amount of foreign tax, and exchange rate if applicable. It makes tax time so much easier than trying to reconstruct everything from scattered brokerage statements. The exchange rate piece is important too - you need to convert foreign taxes to USD using the appropriate exchange rate for the date the tax was paid, not the year-end rate.

Make sure u also consider what happens with state taxes! Some states follow federal MFS rules but others dont. We almost messed this up cuz our state (Oregon) had different rules for MFS filers selling a home than the federal govt does.

I went through this exact situation last year and want to share what I learned. The key thing is to make sure you're splitting based on actual ownership, not just convenience. Since you mentioned the deed has both your names and you're in Florida (non-community property state), you'll each report 50% of the sale. One thing that caught me off guard was tracking down all the documentation for basis adjustments. Keep receipts for any major improvements you made - new roof, HVAC system, kitchen remodel, etc. These increase your basis and reduce your taxable gain. I found old receipts in my files that saved us about $15,000 in reportable gain. Also, don't forget about selling expenses like realtor commissions, title insurance, and closing costs - these reduce your proceeds and lower your gain. Each of you can deduct 50% of these costs on your respective returns. The $250,000 exclusion per person when filing separately is usually more than enough for most people, but make sure you both meet the 2-out-of-5-years residency test independently. Good luck!