17 You can verify a tax preparer's PTIN through the IRS Directory of Federal Tax Return Preparers with Credentials and Select Qualifications on the IRS website. However, there isn't a public database to verify EFINs. At minimum, you should ensure your preparer signs your return and includes their PTIN (required by law). Also, legitimate preparers will have you sign Form 8879 (e-file authorization) before submitting your return electronically. If they don't do these things, that's a red flag.

20 Thanks for the info! I didn't know about the IRS directory. Just checked and my preparer is listed with valid credentials. Will definitely make sure they're having me sign the right forms this year.

This is really helpful - I had no idea about the suitability check being so comprehensive. The outstanding tax debts reason makes a lot of sense. If someone can't even keep their own taxes current, why would the IRS trust them to handle other people's returns electronically? I'm definitely leaning toward reporting this situation now. It sounds like both the aunt and niece could get in serious trouble, and taxpayers in our community deserve to know their returns are being handled properly. Do you happen to know if there's a specific form or process for reporting this kind of violation?

This is exactly what I needed to hear! As a small business owner, I've been checking my transcript multiple times a day and driving myself crazy. The weekly check approach makes so much sense - I'll try to stick to Fridays only. It's reassuring to know that the EIC date appearing first is actually positive progress rather than something to worry about.

This is really helpful to hear from someone who's actually been through this process! I'm curious about the Section 481(a) adjustment you mentioned - how complicated is that to calculate? I'm trying to figure out if this is something I can handle myself or if I really need to bite the bullet and hire a professional. My trading activity wasn't super complex last year, mostly just swing trading stocks, so I'm hoping the adjustment won't be too difficult to work out.

The Section 481(a) adjustment can actually be pretty straightforward if your trading wasn't too complex. Essentially, you're calculating the difference between what your taxable income would have been under your old accounting method versus the mark-to-market method for the year you're making the change. For swing trading stocks, you'd typically be looking at any unrealized gains/losses in your positions at year-end that would now be recognized under MTM treatment. If you had net unrealized losses, that could actually work in your favor as a negative adjustment (reducing your taxable income). The calculation gets more complex if you had positions that spanned multiple years or if you're switching from installment method reporting. Given that you're already dealing with a late Form 3115 filing, I'd honestly recommend getting professional help at least for this first year to make sure everything is calculated correctly. Once you see how it's done, future years become much more manageable. The cost of getting it wrong with the IRS could be much higher than the professional fees.

This is exactly the kind of reassurance I needed to hear! I've been losing sleep over this situation thinking I completely ruined my trader status eligibility. Your experience gives me hope that the IRS will be reasonable about this oversight. Quick question - when you filed your Form 3115 late, did you have to pay any penalties or interest? And roughly how long did it take to get confirmation that they accepted your filing? I'm trying to plan for what to expect when I submit mine with my 2024 return. Also, did you handle the Section 481(a) adjustment calculation yourself or did you get professional help with that part? I'm still on the fence about whether to DIY this or hire someone, especially since money is tight right now after some trading losses this year.

Is it difficult to set up an IP PIN? And what happens if you forget your IP PIN next year when you try to file?

Setting up an IP PIN is actually quite simple. You'll need to create an account on IRS.gov if you don't already have one, which requires some basic verification of your identity. Once your account is set up, you can request an IP PIN through your online account. If you forget your IP PIN when trying to file next year, you have a couple of options. You can retrieve it through your online IRS account if you still have access. If not, you'll need to call the IRS recovery line at a specific number for IP PIN issues, verify your identity, and they can help you recover or reset it. Worst case scenario, you'd need to paper file if you can't recover your IP PIN, but that's rarely necessary.

Is an IP PIN really worth setting up if you don't have any evidence of identity theft? I heard it just complicates things when you file next year.

An IP PIN is absolutely worth setting up, even without concrete evidence of identity theft. Yes, it adds one extra step to filing each year (you need to enter the 6-digit PIN), but that's a tiny inconvenience compared to dealing with actual tax identity theft. Think of it like this - you lock your car even when you park in safe neighborhoods, right? The IP PIN is essentially a lock for your tax filing. Once someone has used your SSN fraudulently once (even by accident), your information is potentially floating around in systems where it could be misused again. The "complication" is literally just remembering to get your new IP PIN each year through your IRS online account and entering it when you file. That takes maybe 2 minutes. Compare that to the weeks or months it can take to resolve identity theft issues if it happens again. Totally worth the minor hassle for the peace of mind.

I used TurboTax last year for this exact situation. It works fine but you have to make sure you enter everything correctly. Enter all W-2Gs individually where prompted, then when you get to the deductions section, select itemized deductions and enter your gambling losses on Schedule A. The software will compare standard vs. itemized and recommend the better option. One thing TurboTax doesn't do well is explain the documentation requirements, so make sure you have your gambling log and supporting evidence organized separately.

You can definitely combine everything into one master gambling log - that's actually the most practical approach. I organize mine chronologically with columns for date, venue, type of game, amounts won/lost, and any supporting documentation I have for that session. For the documentation process, it took me about 2-3 weekends to get everything organized properly. I started by gathering all my bank statements, credit card statements, and any casino player card records I could find. Then I went through month by month matching withdrawals and charges to specific gambling trips or sessions. The key is being systematic about it. Even if you can't remember every detail perfectly, creating a reasonable reconstruction based on the evidence you have is much better than having nothing. The IRS understands that casual gamblers don't always keep perfect records - they just want to see that you made a good faith effort to track your activity. Don't let the documentation requirements overwhelm you. Start with what you have and build from there. Bank records showing ATM withdrawals at casinos are some of the strongest evidence you can provide since they're timestamped and location-specific.