I'm dealing with a similar situation right now - built my house in 2016 as owner-builder and sold it last year. The IRS is questioning my cost basis too. Reading through everyone's experiences here has been incredibly helpful and reassuring. What I'm finding most encouraging is hearing from the former IRS employee that they don't expect perfect documentation for older transactions, especially primary residences. I've been losing sleep over this thinking I needed every single receipt from 8 years ago. I do have my detailed construction spreadsheet that I maintained throughout the build process, plus most of my building permits and the original construction loan paperwork. Based on what everyone is sharing here, it sounds like this should be sufficient documentation along with a clear explanation letter. One question for those who have successfully resolved this - did any of you include photos of the construction process as part of your documentation package? I have hundreds of progress photos from the build and I'm wondering if those would be helpful as supporting evidence or if they're unnecessary. Also, for the timeline - how long did it typically take to hear back from the IRS after you submitted your response? I know I need to respond within the timeframe they specified, but I'm curious about how long the resolution process took for others.

I went through something very similar when I sold my primary residence that I built as an owner-builder in 2017. The IRS sent me that same scary letter claiming the entire sale price was taxable income, and I panicked because I had lost about 60% of my receipts over the years. Here's what I learned that might help: Your detailed spreadsheet from the construction period is actually your strongest piece of evidence. The IRS values contemporaneous records - meaning records you created at the time, not after the fact. Since you tracked everything during construction, that carries significant weight. I supplemented my spreadsheet with whatever I could find: bank statements showing large withdrawals that matched my spreadsheet entries, the original construction loan documents, building permits, property insurance documentation showing replacement value, and even my final inspection certificate from the county. The key was writing a comprehensive response letter that explained my situation clearly: this was my primary residence, I was the general contractor, I maintained detailed records during construction (the spreadsheet), and my gain was well within the $500k married filing jointly exclusion. The IRS accepted my documentation package without any follow-up. They're actually reasonable about missing receipts from older personal residence transactions - they understand people don't keep perfect records indefinitely. Focus on presenting what you have professionally with a clear explanation, and don't let them intimidate you into thinking you owe taxes on money you never actually gained.

I've been dealing with this exact issue for weeks now! After reading through all these suggestions, I decided to try the IRS transcript route first since it's free. I was able to get my tax return transcript online immediately through the IRS website - it took about 10 minutes to verify my identity and download the PDF. While it doesn't look exactly like the original H&R Block return, it shows all the key information including my Schedule C business income and expenses. I called my mortgage lender to ask if this would work for their requirements and they said yes, as long as it's the official IRS transcript. Saved me from having to pay for third-party services or file BBB complaints. Sometimes the simplest solution really is the best one! For anyone else in this situation, definitely try the IRS route first before going through more complicated steps.

I went through something very similar with my 2019 returns from H&R Block! What ended up working for me was contacting H&R Block through their Twitter support (@HRBlock). I know it sounds odd, but their social media team seems to have more access to escalate issues than the regular phone support. I sent them a direct message explaining that I couldn't access my 2019 returns despite being able to see all other years, and they responded within a few hours asking for my account details. Within 24 hours, they had someone from their technical team email me the complete returns as PDFs. The Twitter support route bypassed all the phone hold times and actually got me connected with people who could solve the problem rather than just transfer me around. Worth trying if you're still having issues - sometimes these companies are more responsive on social media where problems are visible to other customers.

You might want to check if you qualified for any partial Roth contribution during those years instead of assuming you couldn't contribute anything. The income limits have a phaseout range where you can make reduced contributions. For 2017, the phaseout for single filers was between $118,000-$133,000. Unless you were completely above the upper threshold, you might have been eligible to contribute something.

This is a really helpful thread! I'm dealing with a similar situation but from 2020-2022. One thing I learned from my tax preparer is that you should also check if your employer offers a 401(k) - if you have workplace retirement coverage, it can affect your ability to deduct Traditional IRA contributions, which impacts the backdoor Roth strategy that people mentioned. Also, make sure to keep detailed records of everything when you're going through the correction process. The IRS may ask for documentation years later, and having your Form 5329s, withdrawal confirmations from Vanguard, and calculation worksheets all organized will save you major headaches if they ever audit this. One last tip - if you end up owing multiple years of the 6% excise tax, you can sometimes set up a payment plan with the IRS rather than paying it all at once. Just call them (or use that Claimyr service others mentioned) to discuss options.

Great advice from everyone here! Just to add another perspective - if you're still having trouble with all the suggested methods, you might want to try calling the IRS Practitioner Priority Line if your accountant is willing to call on your behalf. The wait times are usually much shorter than the regular business line. Also, for future reference, it's worth setting up that IRS Business Account mentioned earlier even if you don't need it right now. Having it ready can save you a lot of headaches when you need documents quickly for loan applications or other business needs. The verification process can take a few days, so it's better to do it when you're not under pressure. Hope you get your 940 form sorted out for your PPP application!

I went through this exact same situation a few months ago when I needed my 940 for an SBA loan application. After trying everything mentioned here, what ultimately worked fastest for me was a combination approach: First, I searched my emails like CosmicCrusader suggested and found the e-filing confirmation from my accountant, but it only had a summary - not the complete form with signatures that my lender required. Then I tried the IRS Business Account route that Natasha mentioned. The transcript was helpful but again, my lender specifically wanted the actual filed form. What saved me was calling my accountant's office and asking to speak with whoever handles client document requests, even if my main contact was unavailable. They were able to pull the complete filed form from their system within 10 minutes and email it to me. For anyone in this situation: be persistent with your tax preparer's office - they almost certainly have the documents you need and can provide them much faster than any IRS process. If your main contact isn't available, ask for someone else who can access the files. Most offices have multiple people who can handle these requests. The key is explaining it's for a time-sensitive loan application - that usually gets you prioritized even when they're swamped.

This is definitely a split payment situation - totally normal for amended returns! I went through the same thing with my 2023 amendment. The IRS processed my basic refund first, then sent a separate payment for the Earned Income Tax Credit about two weeks later. The letter you received likely breaks down exactly what the second payment covers. If you add $4,092 + $3,809 = $7,901, which is pretty close to your expected $8,000 (the small difference might be interest or a minor calculation adjustment). I'd suggest checking your online IRS account transcript to confirm both payments are showing up there - that'll give you the complete picture of how they processed your amendment.

This sounds exactly like what happened to me with my 2023 amended return! I received my first payment of $3,247 in early February, then got a letter about three weeks later notifying me of an additional $2,891 refund. The IRS agent I spoke with explained that they often process the "straightforward" tax adjustments first (like corrected income or deduction changes), then handle the more complex refundable credits in a separate batch. In my case, the second payment was specifically for the Additional Child Tax Credit that I had claimed on my amendment. The letter should clearly state what portion of your amendment the $3,809 covers - probably a specific credit like CTC, EITC, or ACTC. Your total of $7,901 is very close to your expected $8,000, so this definitely looks legitimate rather than an error!