Has anyone ever successfully fought a fringe benefit tax? My company is taxing us for the free lunches they provide in the office which seems ridiculous since I'm basically working through lunch anyway.

I see a lot of great explanations here, but I wanted to add one more possibility that might help explain your situation. Sometimes employers will have a "true-up" or catch-up process for fringe benefits that happens at year-end or after annual enrollment periods. For example, if you enrolled in benefits mid-year, or if there was an error in how your benefits were being calculated throughout the year, your employer might need to correct the tax withholding with a one-time adjustment. This could explain why you're seeing it as a single deduction rather than ongoing monthly taxes. I'd definitely recommend checking with your HR department about the specific benefit this relates to, and ask them to provide documentation showing how the taxable amount was calculated. They should be able to give you a clear breakdown - it's not something you should have to guess about on your paycheck. Also worth noting that if this is related to a significant fringe benefit (like a large life insurance policy or company car), make sure you're prepared for it to potentially show up on your W-2 as additional income when tax season comes around.

It might be worth checking if your state tax agency has any verification requirements too. Sometimes the ID.me notification could possibly be related to state taxes rather than federal. I had a client who was confused about a similar situation, and it turned out the verification was for their state return, not the federal one. You might want to check both your federal and state tax account portals to see if there are any notices or requirements listed there.

I went through something similar recently! The ID.me notification can definitely appear before you receive the physical letter from the IRS. In my case, I got the notification about 10 days before the 5071C letter arrived in the mail. Here's what I learned from my experience: - Don't try to go to the IRS office without the letter - they literally cannot help you without the reference number - The letter will tell you exactly which documents to bring and give you the specific verification code needed - You can check your IRS online account at irs.gov to see if there are any notices posted there first Since you work remotely and have flexibility, I'd suggest checking your online account daily and being patient for the letter. Once you get it, scheduling the appointment is usually pretty straightforward. My verification took about 20 minutes in person, and my refund was released within a week after that. The anxiety is totally understandable - I was stressed about it too! But the process is actually pretty smooth once you have the proper documentation.

I had some confusion with Form 4952 last year. Anyone know if tax software like TurboTax or H&R Block can handle this form correctly, especially the carryover calculations across multiple years?

This is a complex situation that many investors face when they discover investment interest deductions later. Let me add a few practical points that might help: First, before spending time and money on amendments, calculate whether the deductions would actually benefit you in those prior years. If you took the standard deduction and your total itemized deductions (including the investment interest) wouldn't exceed the standard deduction for those years, amendments won't help. Second, keep in mind that investment interest expense is subject to the 2% AGI threshold if you're dealing with years before 2018, which adds another layer of complexity to whether amendments are worthwhile. For your current year planning, since you're expecting substantial capital gains, consider the timing of your stock sales. You might benefit from spreading sales across tax years to optimize your investment income and better utilize any carried-forward deductions you can establish. Also, don't forget that investment interest expense includes more than just margin interest - it can include interest on loans used to purchase investment property, points paid on investment property loans, and other investment-related borrowing costs. Make sure you're capturing all eligible expenses in your calculations. The key takeaway is to start filing Form 4952 this year regardless of your prior year situation, so you don't face this documentation gap again in the future.

Just went through this exact situation! The IRS will send it to whatever address they have on file, which should be from your most recent return. But here's what really helped me - I called my local IRS Taxpayer Assistance Center and explained the address change situation. They were actually able to update my address over the phone and confirm where the letter would be sent. Way faster than waiting for Form 8822 to process. You can find your local office on IRS.gov under "Contact Your Local Office." Worth a shot if you're worried about timing!

Had a similar situation last year when I moved mid-tax season! One thing that really helped was also updating my address with ID.me directly through their website, not just with the IRS. Sometimes there's a disconnect between what the IRS has on file and what ID.me is using for verification purposes. Log into your ID.me account and make sure your current address is listed there too. Also, if you're really worried about timing, you might want to reach out to whoever currently lives at your old address (if possible) to give them a heads up that you might get some IRS mail there - most people are understanding about forwarding important tax documents. The verification process is stressful enough without worrying about mail delivery!

Whatever you do, DON'T file without the IP PIN if you've been issued one in previous years. My cousin did that and it created a HUGE mess. His return was rejected, then flagged for potential identity theft (ironically), and it took him almost 8 months to get his refund. If you absolutely cannot get your IP PIN before the deadline, file an additional extension request (Form 4868) with a paper explanation of your situation attached. That at least documents that you tried to comply with the deadline.

I went through this exact same nightmare last year! Here's what worked for me: First, try calling the IRS Identity Protection Specialized Unit at 800-908-4490 early in the morning (7 AM Eastern sharp). If that doesn't work, you can also try the IP PIN retrieval tool on IRS.gov, but make sure you have your prior year AGI and other verification info ready. One thing that helped me was keeping detailed records of every attempt to contact them - dates, times, reference numbers, etc. This became crucial later when I had to request penalty relief. Also, definitely check that your address is current with the IRS by filing Form 8822 if you've moved recently. The IP PIN gets mailed to whatever address they have on file, which might not be updated even if you filed your return with a new address. Whatever you do, don't file without the PIN - it will just get rejected and create more delays. If you're really running out of time before your extension deadline, document everything you've tried and consider writing a letter to the IRS explaining the situation when you do finally file.