Small correction to what some others have said - if you're using a property management company that charges you a commission when they place tenants AND a monthly management fee, check your contract carefully. Sometimes these placement fees are actually prepaid management fees and should be amortized over the lease term rather than deducted immediately. This came up in my audit last year!

Thanks everyone for all the helpful info! This is exactly what I needed to understand. Just to make sure I've got this right - when I buy the rental property, any commission I pay gets added to my basis and I recover it through depreciation over 27.5 years. But when I pay a realtor to find tenants, that's a current year deduction on Schedule E. One follow-up question though - what if I use the same realtor for both? Like if my buyer's agent also offers property management services and will help me find tenants later. Do I need separate contracts or invoices to make sure the IRS can see which commission is for what purpose? Also @McKenzie Shade, thanks for the heads up about the new reporting requirements! I definitely want to make sure I'm compliant from the start. Where can I find more info about these draft forms?

Just throwing this out there - might also wanna check that ur state withholding account has the right address too! When I regstered mine the info got messed up somehow between the state and federal systems. Ended up with letters going to 3 different addresses 🤦‍♂️ Had to fix each one separately.

This exact scenario happened to my consulting business last year! When I registered for state payroll withholding, it definitely triggered an old CP148A notice - turns out the IRS had been sitting on it since I had filed a change of address form months earlier but never received confirmation. The key thing is that CP148A notices are just informational - they're confirming an address change, not demanding any action. But the 2020 date is definitely weird and suggests a system error or backlog issue. I'd recommend calling that Business & Specialty Tax Line number mentioned earlier AND filing Form 8822-B just to be safe. When you call, specifically ask them to verify what address they have on file for all your business tax accounts (income tax, payroll tax, etc.) because sometimes they don't sync up properly between different IRS systems. Also, double-check your state withholding account registration to make sure the address there matches what you want the IRS to have. These cross-system triggers can create a domino effect if the addresses don't align perfectly.

This is such a timely discussion! I'm actually facing a similar situation right now - just found some W-2s from 2021 while going through old paperwork. The information about the April 18, 2025 deadline is really helpful, though it's making me a bit anxious since that's coming up fast. I had no idea about the wage and income transcript tool that Isaac mentioned - that sounds like a game-changer for checking what the IRS already has on file. I'm definitely going to try that before panicking about filing amendments. It's reassuring to see so many people have successfully navigated this process, even if it seems complicated with all the forms and deadlines. The certified mail tip for anyone cutting it close is brilliant too. Thanks everyone for sharing your experiences and practical advice!

I went through this exact same situation last year and can share some hard-learned lessons! Found a W-2 from a seasonal job in 2020 that I'd completely forgotten about while doing my 2023 filing. The good news is that I was still within the 3-year window, but just barely - filed my 1040-X in March 2023 and got my refund by September. A few things I wish I'd known earlier: First, definitely use that wage and income transcript tool others mentioned - it's a lifesaver for seeing what employers actually reported to the IRS. Second, when you file Form 1040-X, include copies of ALL your W-2s from that year, not just the missing one (learned this the hard way when mine got kicked back initially). Third, if you're cutting it close to any deadline, absolutely send it certified mail with return receipt - that postmark date could save you hundreds or thousands of dollars. The whole process took about 20 weeks from filing to receiving my $847 refund, plus interest. It's definitely worth the effort if you're within that 3-year window, but don't wait - those deadlines are absolutely firm!

quick question - if i claim the 2021 child tax credit now by amending my return, will that trigger an audit? i'm worried about opening a can of worms with the irs.

Hey Omar! I was in almost the exact same boat - got that IRS letter in 2021 about potentially qualifying for the child tax credit but life got crazy and I completely forgot about it. Last year I finally filed an amended return and got back over $4,000! The good news is you still have time since the 3-year window doesn't close until April 2025. With kids aged 4 and 7 in 2021, you could potentially get $6,600 ($3,600 + $3,000) if you didn't receive any advance payments. Start by creating an IRS online account if you don't have one - you can see your payment history there to check if you got any monthly payments between July-December 2021. If not, you're likely eligible for the full amounts. Then just file Form 1040-X. TurboTax can walk you through it, or if you want to be extra sure, a tax preparer can help. Don't let that money sit there - it's rightfully yours!

You might also qualify for earned income credit if ur income isnt too high. def look into that too!

Just wanted to add that if you're filing late and expecting a refund (which you likely are with the Child Tax Credit), there's no penalty! The IRS only charges penalties if you owe money. So don't stress about being late - you're actually giving the government an interest-free loan. I'd recommend using the IRS Free File program if your income is under $73,000, it's completely free and walks you through everything step by step.