Does anyone know if it matters that the land is undeveloped? I inherited a vacant lot from my dad in 2019 and haven't done anything with it. Does the stepped-up basis rule still apply the same way?

Brandon, congratulations on holding onto that land for 20 years - that's quite an investment! You're absolutely right about the stepped-up basis for inherited property. As others have mentioned, your cost basis would be the $60,000 fair market value when you inherited it in 2005, not your grandfather's original $8,000 purchase price. One thing I'd add is that you might want to double-check if there were any estate taxes paid on the property when your grandfather passed. Sometimes the estate tax return (Form 706) can provide additional documentation of the property's value at the time of death, which could be helpful for your records. Also, since you've held it for 20 years, you'll definitely qualify for long-term capital gains rates. Depending on your income level, you could pay 0%, 15%, or 20% on the $127,000 gain (assuming that $60,000 basis is accurate). If you're in a lower income bracket, you might even qualify for the 0% rate on some or all of the gain. Just make sure to keep good records of whatever documentation you use to establish that 2005 value - county assessments, comparable sales, or any appraisals from that time period. The IRS may want to see supporting evidence if they ever question the basis.

I had cycle code 1005 last year and eventually got my refund without any issues! It took exactly 28 days from acceptance to deposit. The transcript showed "no return filed" for about 3 weeks, then suddenly updated with all my information. Are you seeing any other codes on your transcript? Do you have access to your account transcript as well as return transcript?

I'm dealing with the same frustrating situation! Filed on 2/5 and got acceptance confirmation, but my transcript still shows "no return filed" with cycle code 1005. What's really confusing me is that I've been checking both my return transcript and account transcript, and they're showing different information. My account transcript shows some processing activity but the return transcript is basically empty. I've been reading through all these responses and it sounds like this is more common than I thought. The manual review explanation makes sense - I did claim some education credits and have a side business, so maybe that's what triggered it. Has anyone here actually received a letter or notice while their return was in this status? I'm trying to figure out if I should be worried about missing some required documentation or if this is just the normal (albeit slow) processing everyone's experiencing this year. Really appreciate everyone sharing their experiences - this is way more helpful than anything I've found on the IRS website!

Got my trace # this AM! Filed 2/15, accepted same day, 846 code on 3/1, SBTPG got it 3/5, trace showed up today 3/7. BTW if ur using the app vs website they show diff info sometimes. App showed nothing but website had my trace when I checked. Might wanna try both if ur waiting. GL everyone!

I'm in the exact same situation! Filed on 3/2, accepted 3/3, got my 846 code on 3/5, but still no trace number from SBTPG. I've been checking both their website and app multiple times daily (thanks Gabriel Freeman for that tip - didn't know they could show different info!). Based on what everyone's sharing here, it sounds like we're in the normal range for this year's delays. I'm going to try calling that direct number Debra Bai mentioned (800-901-6663, option 2, then option 4) if I don't see anything by Monday. It's reassuring to know I'm not alone in this waiting game. Will update if I get any movement on my trace number!

Make sure you understand what your wife actually filed! There's a common tax scam where people claim their W-2 wages should be reclassified as "non-taxable" based on misinterpreting Section 861 of the tax code. The IRS has specifically listed this as a "frivolous tax position" which automatically triggers a $5,000 penalty per return. Did her cousin actually get $20k back or is that just what she claimed? Many people who promote these schemes lie about their success to recruit others.

I'm really sorry you're going through this situation. Based on what you've described, it sounds like your wife may have fallen victim to one of the most common tax scams out there - the "wages are not income" or Section 861 argument that's been circulating for years. Here's what I'd recommend as immediate steps: 1. **Get your tax transcripts** - Request account transcripts for all the years involved from the IRS website. This will show exactly what was filed and what penalties were assessed. 2. **Contact the Taxpayer Advocate Service** - They're independent from the IRS and specifically help people in financial hardship situations like yours. Call 877-777-4778 or find your local office online. 3. **Look into First-Time Penalty Abatement** - If this is your first major compliance issue, you may qualify to have some penalties reduced or eliminated. 4. **Consider an Offer in Compromise** - Given your financial situation, you might be able to settle for much less than the full amount owed. The fact that your 2022 refund hasn't been applied to your balance is concerning and should be addressed immediately. The IRS should be able to explain where that money went when you contact them. Don't give up - there are options available even when you can't afford an attorney. The key is understanding exactly what was filed and then working through the proper channels to address it.

Quick clarification on one thing - did you notice if they're withholding for Social Security and Medicare still? Sometimes when federal income tax withholding stops, it can affect these too. If those also stopped, that's an even bigger issue and might indicate something seriously wrong with how your employer is handling payroll.

I'm sorry you're going through this stressful situation. As someone who's dealt with payroll issues before, I'd suggest a few immediate steps: First, gather all your paystubs from the entire year and create a spreadsheet tracking what was withheld each pay period. This will help you pinpoint exactly when the federal withholding stopped and give you documentation if needed. Second, since your HR person is out until mid-January, try to escalate this to their supervisor or the finance department. A complete stop in federal withholding for months is a serious payroll error that needs immediate attention, especially since it's affecting your tax liability. Third, consider making estimated tax payments for the fourth quarter if you haven't already. Even though the quarterly deadline has passed, you can still make payments to reduce your April bill. The IRS website has calculators to help estimate what you should pay. Finally, don't panic about the $60k figure - that's likely an overestimate. With your income level and the $19k already withheld, your actual liability will probably be lower. The IRS is generally reasonable about payment plans for taxpayers who are proactive about resolving issues. Document everything about this payroll error - you may need it to support a reasonable cause argument if penalties are assessed.