This 1099-K situation is such a headache! I'm dealing with something similar but with Stripe instead of PayPal. I received a 1099-K from Stripe for $15,000, but only about $8,000 of that came from clients who also sent me 1099-NECs. The other $7,000 was from smaller clients who didn't send separate forms. My question is: for the clients who didn't send 1099-NECs, do I still need to worry about double reporting? It seems like the Stripe 1099-K might be the only record of those payments. Also, has anyone had luck getting payment processors to amend their 1099-K forms when there are date discrepancies? I'm wondering if it's worth the hassle or if I should just follow the constructive receipt rule that Sean mentioned. The whole payment processor reporting system really needs to be simplified. It's causing way more confusion than it's solving!

I'm dealing with a very similar situation and wanted to share what I learned from my tax preparer. The key insight is that the IRS matching system is designed to handle these overlapping forms - they expect to see both the 1099-K and 1099-NECs reported. Here's the approach my CPA recommended: Report all forms exactly as received, but on your Schedule C, only include your actual business income once. Most tax software will ask you to reconcile any discrepancies between the forms you've entered and your Schedule C totals. For your January 1st payment timing issue, I faced something similar. We decided to report the income in 2025 (when I actually received access to the funds) and attached a brief explanation to my return noting the PayPal 1099-K date discrepancy. My preparer said this is becoming increasingly common and the IRS has guidance for these situations. One tip that really helped me: I created a simple Excel sheet listing every payment, which form(s) reported it, and which year I'm claiming it as income. This made it much easier to explain everything clearly on my return and gave me confidence that I wasn't missing or double-counting anything.

irs playing games with these pins fr fr 🤡

I feel your pain! Just went through this exact same thing last week. The IP PIN system is honestly a mess - half the time the online tool doesn't work and the phone lines are jammed. Here's what finally worked for me: try the Get IP PIN tool on IRS.gov during off-peak hours (like really early morning or late evening), and if that fails, the Identity Protection Unit number that Gemma mentioned is your best bet. Also make sure you have your 2023 AGI ready before calling - they'll ask for it to verify your identity. Hang in there, you'll get through this! 💪

Hey Andre! Just to add some context - that Memphis TN office is legit, it's one of the IRS's major processing centers. The timing makes sense if you or someone (like your school's financial aid office) requested this for FAFSA purposes around mid-February. One thing to note: this letter is specifically saying they have NO record of a processed return for the tax period, which is exactly what you'd want for financial aid verification if you weren't required to file or haven't filed yet. If you're still unsure who requested it, definitely call that 800 number - they can tell you the source of the request. But honestly, sounds like everything is in order for your FAFSA needs! Just keep that tracking ID handy in case you need to reference this letter later.

Quick tip for anyone dealing with these verification letters - if you need multiple copies for different schools or applications, you can request additional copies through the IRS online account portal or by calling that 800 number. They'll send you official copies with the same tracking ID. Super helpful if you're applying to multiple schools or programs that each need their own copy! Also, these letters are typically valid for about 120 days from the issue date, so if you're planning to use it for next year's FAFSA or other applications, just keep that timeline in mind. The February 15th date on yours gives you plenty of time though! Hope this helps other folks who might be in similar situations 😊

As a tax professional, I'd say anything over $6,000-7,000 in refunds might be worth reconsidering, but honestly it depends on your financial discipline and goals. Some of my clients deliberately overwithhold by $8,000+ because they know they'd spend the extra money throughout the year instead of saving it. A good middle-ground approach is to start conservative (like you're planning) for the first year, then use that actual refund amount as a baseline. If you get back $4,000, you might be perfectly happy with that forced savings. If you get back $10,000, you might want to adjust one of your W-4s the following year to claim 1 allowance or use the estimator tool to fine-tune it. The beautiful thing about your situation is you have flexibility. Since you're both going to be W-2 employees with steady income, predicting your tax situation will be relatively straightforward compared to people with variable income or complex deduction situations. One last tip: when you do start the nursing job, keep your first few paystubs and maybe run them through the IRS withholding calculator around October. That'll give you a good preview of where you'll land tax-wise and whether any mid-year adjustments make sense.

I've been following this thread as someone who went through the exact same transition a few years ago - from student to full-time healthcare worker while my partner already had steady employment. Your approach is absolutely solid and very common among couples who prefer the "forced savings" method. One thing I wish someone had told me when I started my first nursing job: don't be alarmed if your first few paychecks seem to have a lot taken out for taxes. Between federal, state, FICA, and any benefits deductions, it can be a bit of a shock compared to the smaller paychecks from seasonal work. But remember, that higher withholding is exactly what will give you that nice refund you're planning for. Also, keep in mind that as a new nurse, you might have some additional tax considerations down the road - things like continuing education expenses, professional licensing fees, or if you end up picking up extra shifts. These can potentially be deductible, but starting with your conservative withholding approach gives you a good foundation regardless. The peace of mind approach has worked really well for my household. We've never regretted having that extra buffer, especially during our first few years when we were still figuring out our new financial normal with dual full-time incomes. Congratulations on almost finishing nursing school - you're going to do great!

As someone who's been through several 338(h)(10) elections, I wanted to add a perspective on managing the overall project timeline that hasn't been discussed much here. One thing I learned the hard way is that these elections create dependencies across multiple workstreams that need careful coordination. You've got valuation work, legal documentation review, tax calculations, financial statement adjustments, and regulatory filings all happening simultaneously with different deadlines. I now create a master project timeline that maps out all deliverables with their interdependencies. For example, you can't finalize your deferred tax calculations until the asset allocation is locked down, but you need preliminary deferred tax estimates to assess the overall transaction economics. Similarly, the Form 8883 preparation depends on having final asset valuations, but those valuations might need input from tax advisors about optimization strategies. Also, don't underestimate the time needed for buyer-seller coordination on the allocation. Even with purchase agreement language that seems clear, there's often back-and-forth on methodology and specific asset values. Build extra time into your schedule for this negotiation process. One last tip: establish clear communication protocols early. With so many advisors involved (tax, legal, valuation, accounting), it's easy for people to work on outdated assumptions or miss important updates. Regular status calls with all key parties can prevent a lot of rework later in the process. The technical accounting and tax aspects are complex enough without adding project management challenges on top!

This thread has been incredibly helpful for understanding 338(h)(10) elections! I'm currently working through my first one and have been struggling with some of the practical implementation details that you all have covered so well. One question that's come up for us: how do you handle situations where the target company has intercompany balances with the seller's other subsidiaries? In our case, the target has significant intercompany receivables and payables that were part of the consolidated group's cash management system. I'm wondering if these intercompany balances get treated as part of the deemed asset sale, or if they need to be settled separately as part of the pre-closing restructuring. Our legal team is saying they should be eliminated before the deemed liquidation, but our tax advisors seem to think they could be treated as assets/liabilities in the allocation. Also, has anyone dealt with intercompany licensing agreements or management fee arrangements that were in place pre-transaction? I'm trying to figure out if these ongoing relationships affect the 338(h)(10) analysis or if they're treated as separate post-closing arrangements. The coordination challenges @Oliver Schmidt mentioned are definitely real - we're juggling input from so many different advisors on these intercompany issues that it's hard to get a clear answer on the right approach. Thanks again to everyone for sharing their experiences - this community has been invaluable for navigating such a complex area!