This whole thread has been incredibly eye-opening! I've been keeping everything for 7 years too, just like Omar, because that's what I was always told. But after reading everyone's experiences, I think the key takeaway is that it really depends on your specific tax situation. What I'm planning to do now is take the hybrid approach that several people mentioned - keep basic returns (standard deduction, simple itemized deductions) for 3 years, but hold onto anything with business income, significant investment activity, or unusual deductions for the full 7 years. I'm also definitely investing in a good crosscut shredder before I start this project. The security concerns people raised about identity theft are real, and it sounds like the cheap shredders just aren't worth the frustration when you're dealing with volume. One question for those who've gone digital - do you still keep paper copies of the actual tax returns themselves, or do you scan everything and go completely paperless? I'm torn between wanting to free up the physical space and being nervous about relying entirely on digital copies for something so important.

This has been such a valuable discussion! As someone who works with taxpayers daily, I want to emphasize a few key points that have come up: The 3-year rule is indeed the standard, but the exceptions mentioned here are crucial. I see too many people get caught off guard when they need documentation for amended returns, business expenses, or investment basis calculations years later. One thing I'd add - if you're married and file jointly, make sure both spouses are on the same page about document retention. I've seen situations where one spouse cleaned out files without realizing the other had claimed business expenses or investment losses that required longer retention periods. For those going digital, consider the "3-2-1 backup rule": 3 copies of important data, on 2 different types of media, with 1 stored offsite. Tax documents are too important to lose to a hard drive crash or house fire. And please, please shred everything properly! I've helped taxpayers deal with identity theft from improperly disposed tax documents. It's a nightmare that's completely preventable with a good crosscut shredder. The hybrid approach many of you mentioned is exactly what I recommend to clients - keep it simple for basic returns (3 years) but err on the side of caution for anything complex (7 years). Better to store a few extra boxes than to scramble for missing documentation during an audit.

I'm also dealing with a CP24 situation right now and this thread has been incredibly reassuring! Got my notice about a week ago and was really worried about the 4-6 week timeline, but seeing everyone's actual experiences of 13-19 days is such a relief. One thing I wanted to add that I haven't seen mentioned yet - if you're really anxious about the timeline like I was, you can also set up account alerts through your bank's mobile app. That way you'll get notified immediately when any deposit hits your account, even if the IRS systems haven't updated yet. I've been checking "Where's My Refund" daily with my new adjusted amount (thanks for that tip everyone!), but knowing I'll get a bank notification the moment the money arrives gives me extra peace of mind. Based on all these positive experiences, it sounds like your car repairs should definitely be covered by mid-September rather than October. The CP24 really does seem to be good news rather than something to stress about!

I just wanted to jump in here as someone who received a CP24 notice about 5 weeks ago and can confirm what everyone else is saying - the actual timeline is WAY better than what the IRS tells you! My refund arrived in exactly 16 days, not the 4-6 weeks they quoted. What really struck me reading through this thread is how consistent everyone's experiences have been. Almost everyone is reporting 2-3 weeks instead of the full 6 weeks, and most adjustments seem to be in the taxpayer's favor with additional credits or corrections that increase the refund amount. The CP24 essentially means the IRS already did the hard work of reviewing your entire return and found something they could fix automatically without needing any additional paperwork from you. That's actually great news! In my case, they caught that I had missed the Recovery Rebate Credit, which added an extra $1,400 to my refund. Based on your August 25th letter date and everyone's shared timelines here, I'd expect your money to arrive sometime in the first or second week of September - well ahead of your car repair needs. The waiting is definitely the most stressful part, but the CP24 is actually one of the better IRS notices to receive since it usually means more money is coming your way!

This is exactly the kind of situation that can cause a lot of stress, but you're handling it the right way! I've dealt with similar K-1 corrections before and can confirm what others have said - for SSN-only corrections, you typically don't need the full 1065X process. One thing I'd add that hasn't been mentioned much: make sure to double-check ALL the other K-1s in your return while you're at it. I've found that when I make one data entry error like this, there's sometimes others lurking that I missed. Better to catch them all now rather than having to do multiple corrections later. Also, since you mentioned this is stressing you out - completely understandable! But this is actually one of the easier tax corrections to handle. The IRS deals with SSN corrections all the time, and as long as you're proactive about it (which you are), it should resolve smoothly. Your partner will appreciate you catching and fixing this quickly.

I went through this exact situation about 6 months ago with our LLC that's taxed as a partnership. You're absolutely right that you don't need to file a 1065X for just an SSN correction - that would be overkill for this type of error. Here's what worked perfectly for me: I created a new K-1 with the correct SSN, wrote "CORRECTED" in red ink at the top, and included a simple one-page letter explaining that only the SSN was incorrect and no dollar amounts were changed. I referenced our EIN and the tax year, then sent everything via certified mail to the same IRS processing center. The whole thing was resolved without any issues. My partner never heard anything from the IRS about it, and when I followed up a few months later, everything was properly updated in their system. One tip that really helped: I made sure to give my partner the corrected K-1 immediately so they could reference it if any questions came up on their personal return. Fortunately they hadn't filed yet, so it didn't complicate things on their end. Don't stress too much about this - it's really a straightforward correction and the IRS handles these SSN fixes all the time!

Did anyone actually tell you it was an IRA distribution? Because it makes a huge difference if it was a regular inherited IRA vs. a beneficiary IRA that was set up after the grandparent's death. Each has different tax consequences and requirements.

Just wanted to add some perspective from someone who works in estate administration. The tax withholding you're seeing is actually required by law in many cases - financial institutions are obligated to withhold taxes on IRA distributions unless the beneficiary specifically elects out of withholding (which most people don't know they can do). The 12.5% withholding rate suggests this was likely a traditional IRA. However, depending on your combined income and tax bracket, you might still owe additional taxes beyond what was withheld, or you might get some back as a refund. The key is that this gets reconciled when you file your 2025 return. One thing to consider: if there are multiple distributions planned from the estate, you might want to consult with a tax professional about timing and tax planning strategies. Sometimes spreading distributions across tax years can help minimize the overall tax burden, especially if it keeps you out of higher tax brackets.

Don't forget to file Form 8606 with your taxes regardless of which option you choose! I messed this up one year and it was a nightmare to fix later.

Kennedy, you're definitely not alone in this situation! The good news is you still have time to fix this before it becomes a long-term tracking headache. Given that you're concerned about the bookkeeping nightmare, I'd strongly recommend the recharacterization route if your income allows for Roth contributions. It's clean, simple, and treats the contribution as if it went straight into a Roth from the beginning. No Form 8606 needed, no basis tracking for years to come. If you're over the Roth income limits too, then the backdoor Roth conversion is your next best bet - but make sure you don't have other pre-tax IRA money that would complicate the pro-rata rule calculations. Whatever you decide, act quickly since you're running up against year-end deadlines for conversions, and don't forget to coordinate with Fidelity to make sure all the paperwork gets handled properly. They should be able to walk you through whichever option makes sense for your situation.