Did you end up taking legal action? I'm worried this might be headed that way and wondering what the process was like for you. Did you have to hire a forensic accountant?

We managed to avoid court, thankfully. I hired both my own CPA and an attorney specializing in shareholder disputes. The attorney sent a formal demand letter outlining the specific records we needed to inspect and the potential claims we might bring if denied. That got their attention. We did hire a forensic accountant who reviewed 5 years of bank records and identified over $175,000 in fake "loans" that never actually entered company accounts. Rather than litigation, we negotiated a settlement where the majority shareholder returned the improper payments and we restructured the company with better oversight. The threat of legal action and potential personal liability for the majority shareholder was usually enough motivation to resolve things.

This is great advice. When this happened at my company, our bylaws actually prohibited shareholder loans entirely without unanimous consent. Made it real easy to challenge the "repayments" since no vote was ever taken.

If you were claimed as a dependent on someone else's 2023 return, you won't receive the initial payment now. However, since you'll be filing as independent for 2025, you should be able to claim the recovery rebate credit when you file your 2025 taxes next year. The important thing is that no one can claim you as a dependent on their 2025 return. Your parents claiming you for 2023 affects the initial payment, but your 2025 status is what ultimately determines eligibility for the credit.

Thank you for explaining! So basically I won't get anything now, but can get it when I file next year as long as my parents don't claim me as a dependent for 2025. That makes sense.

For joint filers, the Get My Payment tool typically only shows status for one spouse - usually whoever is listed first on the tax return. If your husband is the primary filer, you'll just see his status, but the payment should include both of your portions ($2800 total if you both qualify for the full amount). If you received a partial payment that seems to only cover one person, you might want to wait a few days to see if a second payment arrives. Some couples have reported receiving their payments separately despite filing jointly.

That explains it! We did get $2800 deposited, so I guess it was for both of us even though the tracker only showed his info. Thanks for clearing that up - been worried for no reason I guess.

Do you know if you can apply for an ITIN online? Or do you have to mail in the physical form? I'm helping my cousin who just moved here and needs to get one.

Unfortunately, you cannot apply for an ITIN completely online. The IRS requires you to either mail in a physical Form W-7 along with original documents (like a passport) or certified copies, or visit an IRS Taxpayer Assistance Center or authorized Acceptance Agent in person. For your cousin, the easiest option might be to find an authorized Acceptance Agent - they can verify the original documents in person so your cousin doesn't have to mail in her actual passport. Many accounting firms and some tax preparation services are authorized agents. The IRS website has a tool to find agents near you.

I made the mistake of using my SSN on all my W-9 forms when I first started freelancing and later learned that it's actually better to get an EIN even as a sole proprietor. Keeps your SSN a bit more private since not as many people see it.

How do you contact the Taxpayer Advocate Service? Is there a long wait time to get help from them too?

You can contact the Taxpayer Advocate Service directly by calling 1-877-777-4778 or by filling out Form 911 (Request for Taxpayer Advocate Service Assistance). You can also find your local office on the TAS website - sometimes it's faster to work with your local office. The wait time varies depending on your location and the complexity of your case. In my experience, I got an initial response within about a week, which is much faster than trying to resolve issues through normal IRS channels. Once you're assigned an advocate, they become your point of contact and handle communications with the IRS on your behalf, which simplifies the whole process considerably. They're especially helpful if you've already tried to resolve your issue through normal IRS channels without success.

I used a tax resolution firm for a $30k debt and honestly regret it. They charged me $3,000 upfront and basically just filled out the same forms I could have done myself. They promised they could get me an Offer in Compromise but ended up just setting up a regular payment plan that I could have arranged on my own for free.

Thanks for sharing your experience. That's exactly what I was worried about - paying thousands for something I could potentially do myself. Sounds like using the free Taxpayer Advocate Service and some of these other resources might be a better approach before resorting to paying a resolution firm.

Thanks for bringing this up! I should've mentioned this is definitely in a taxable brokerage account, not an IRA or anything tax-advantaged. So it sounds like I do need to adjust the cost basis on Schedule D. Now I just need to figure out if Fidelity already adjusted it on the 1099-B or if I need to do it manually.

Since it's a taxable account, then yes, you'll need to adjust the cost basis on Schedule D. Check your 1099-B carefully - there should be some indication whether the basis has been adjusted. Sometimes they'll have footnotes or codes that indicate this. If you're still not sure, calling Fidelity directly might be the best bet - specifically ask if the cost basis on your 1099-B already reflects the nondividend distribution adjustment.

I used TurboTax last year with a similar situation. If you import directly from your brokerage, it usually gets it right, but double-check that the cost basis matches what you expect after the adjustment. Sometimes I've had to manually override the imported basis.