I had the exact same "Action Required" message show up on my 2024 transcript last week! Really freaked me out at first because of that exclamation mark, but after doing some research and talking to a tax pro friend, it seems like this is just their new way of saying "we're processing your return and might need to verify some stuff." From what I understand, the IRS is being extra cautious this year with identity verification and certain credits (like EITC, CTC, etc.). The 714 timestamp you mentioned is pretty standard - that's usually when their system updates overnight. I'm in week 2 of waiting and haven't received any mail notice yet. My "Where's My Refund" tool still just says "being processed" but at least the transcript shows they received it. Trying not to stress about it since everyone here seems to say it usually works out fine. @Bruno that's solid advice about checking mail daily - definitely don't want to miss an actual notice if one comes!

I got the same exact message on my 2024 transcript! The "Action Required" wording definitely caught me off guard too, but after reading through all these responses I'm feeling a lot more confident that it's just standard processing stuff. What's helping me stay calm is remembering that if they actually NEEDED something from me right now, they would have been way more specific about what to do. The fact that the message basically says "we'll contact you IF we need something" tells me they're still working through their review process. I filed about 10 days ago and have been obsessively checking my transcript daily (probably not helping my stress levels lol). But seeing that other people are in the same boat and that some folks from last year never even got a follow-up notice is reassuring. Going to try to stop checking every day and just focus on watching my mail for the next few weeks. Thanks everyone for sharing your experiences - this community is such a lifesaver during tax season! 🙏

This has been such an incredibly thorough discussion! As someone who handles corporate tax compliance for several clients, I'm bookmarking this entire thread. The evolution from the basic question about deductibility to covering tax-on-tax effects, multi-state complications, credit interactions, and even FIN 48 considerations is exactly the kind of comprehensive analysis that's hard to find elsewhere. What really strikes me is how interconnected all these issues are. You can't just look at deferred taxes in isolation - you have to consider the state tax implications, the interaction with uncertain tax positions, the quarterly reporting requirements, and even future business changes. It's a perfect example of why corporate tax accounting requires such careful documentation and analysis. For anyone still working through similar deferred tax issues, I'd suggest creating a detailed checklist that covers all the points raised here: verify you're using the correct blended rate calculation, document your assumptions about future rate changes, ensure consistency with FIN 48 positions, and maintain detailed support for your quarterly rollforward calculations. The upfront work is significant, but it prevents the kind of prior period correction headaches that several people mentioned. Thanks to everyone who contributed their expertise here - this is the kind of collaborative problem-solving that makes these professional communities so valuable!

This has been an absolutely fantastic deep dive into deferred tax complexities! As someone who works with multi-state corporate clients, I can't emphasize enough how valuable this discussion has been. I wanted to add one more consideration that hasn't been mentioned yet: the impact of SALT cap limitations on your deferred tax calculations. With the $10,000 cap on state and local tax deductions for federal purposes, some companies are finding that their traditional assumption about state taxes being federally deductible isn't always holding true anymore. If your company is hitting the SALT cap, the deductibility of additional state taxes becomes more complicated, which can affect how you calculate the tax-on-tax adjustment in your blended rate. For companies with significant state tax liabilities, this could materially impact the effective rate used in deferred tax calculations. We've started including SALT cap projections in our deferred tax rate calculations for clients where this could be a factor. It adds another layer of complexity, but it's necessary for accuracy given the current tax environment. Also, for anyone dealing with these complex deferred tax issues regularly, I'd recommend developing a standardized documentation template that captures all the decision points discussed here - from rate calculations to FIN 48 interactions to quarterly rollforward support. Having consistent documentation makes audits much smoother and helps ensure year-over-year consistency in your approach. Thanks again to everyone for sharing such detailed insights - this is exactly the kind of collaborative learning that helps us all stay current with evolving tax complexities!

Has anyone else had their stimulus checks garnished for child support? I'm worried that if I file now to get the past stimulus money, it might all go to my back child support instead of to me. Really need this money for rent.

I was in a very similar situation - divorced and hadn't filed since 2018 due to complications with my ex's business documentation. Here's what I learned after finally getting caught up: You can absolutely still claim the stimulus payments! The key deadlines people mention are for the original automatic payments, but there's no deadline for claiming them as Recovery Rebate Credits when you file your returns. You have 3 years from the original filing deadline to file and get refunds. A few important things I wish I'd known earlier: - File your returns in chronological order (2018, 2019, 2020, 2021, etc.) - The stimulus payments are claimed on specific years: 2020 return for first two payments, 2021 return for the third - If you're due refunds (which you likely are with the stimulus credits), there are no late filing penalties - Keep detailed records of everything since you'll be mailing paper returns The whole process took me about 6 months to complete, but I ended up getting back over $4,000 in stimulus money plus additional refunds I wasn't expecting. Don't let the overwhelm stop you - start with gathering your documents for 2018 and work forward. You've got this!

Just wanted to add some important context here - you absolutely can still claim those stimulus payments through the Recovery Rebate Credit when you file your back taxes. However, be aware that the IRS has been extra thorough in reviewing returns that claim these credits, so make sure you have documentation of what you actually received (or didn't receive). If you're unsure about which payments you got, you can request your Account Transcript from the IRS online at irs.gov - it'll show all payments made to you. This will help you avoid claiming incorrect amounts which could delay your refund or trigger correspondence from the IRS. Also, since you mentioned being out of work, don't forget to look into other credits you might be eligible for like the Earned Income Tax Credit (if you had some income) or the Child Tax Credit if you have kids. These can significantly increase your refund beyond just the stimulus payments.

Just wanted to share my experience since I was in almost the exact same situation last year. I hadn't filed 2020 or 2021 taxes and was panicking about missing out on the stimulus money. Here's what I learned: First, you definitely CAN still get the stimulus payments through the Recovery Rebate Credit when you file your back taxes. The money comes as part of your tax refund, not as separate stimulus checks. Second, time is critical! For 2020 taxes, you only have until May 17, 2024 to claim any refund (including stimulus money). That's coming up fast! For 2021, you have until April 18, 2025. I ended up getting my Account Transcript from the IRS website to see exactly which payments I had received (turned out I got one partial payment I'd forgotten about). This was crucial because the IRS will delay your refund if you claim the wrong amount. Filed both years in February and got my refunds about 10 weeks later - much slower than normal but I did get the full stimulus amounts I was eligible for. The wait was nerve-wracking but totally worth it. Don't give up hope, just make sure you file accurately and as soon as possible!

I'm surprised nobody has mentioned the potential for basis adjustment due to the "kiddie tax" that might have applied while the shares were in the UGMA account. If the custodial account generated dividends or other income that exceeded certain thresholds while you were a minor, there could be implications for your basis calculation. Also, don't forget to check if there were any return of capital distributions over the years that would have reduced your basis. With shares held this long, it's surprisingly common.

This is exactly the type of complex situation where getting professional help makes sense. Between the original employee stock options, the UGMA transfer, multiple corporate actions (two mergers!), and decades of potential dividend reinvestments, you're dealing with a multi-layered basis calculation that could easily result in overpaying taxes if handled incorrectly. A few additional things to consider that others haven't mentioned: 1. Check if your brokerage has any historical records from when the shares were transferred in 2018. Sometimes they capture basis information from custodial accounts even if it's not immediately visible. 2. Contact the current company's investor relations department - they often maintain historical information about corporate actions, stock splits, and merger terms going back decades. This documentation will be crucial for your basis calculations. 3. If your father still has any old tax returns from around 1992 when he exercised the options, those might show the income he recognized, which would help establish his original basis. 4. Don't overlook state tax implications - some states have different rules for gift basis than federal tax law. Given the potential tax savings involved with shares held for 30+ years, it's probably worth investing in proper documentation and calculation rather than guessing. The IRS is pretty strict about substantiating basis claims, especially on large gains from old securities.