mine cleared after 3 weeks, just keep checking WMR and your transcripts. dont call them unless its been over 21 days they wont tell u anything anyway

Hey! I was in the exact same situation last month - had those same codes on my transcript and was freaking out about when I'd get my refund. The 570 hold cleared after about 3 weeks for me, and I ended up getting a CP05 notice in the mail asking me to verify my identity online. Once I did that, my refund was released within a week. The waiting is honestly the worst part, but try not to stress too much - these codes are super common this filing season and most people get their refunds eventually. Just keep checking your transcript every Friday when they update! 🤞

Another thing to consider - the timing of when you sell might matter for tax purposes. If you've held the Bitcoin for over a year, you'll qualify for long-term capital gains rates, which are typically lower than short-term rates. For 2025, long-term capital gains are taxed at 0%, 15%, or 20% depending on your income bracket, while short-term gains are taxed as ordinary income (potentially much higher). So if some of your brother's Bitcoin investments were made less than a year ago, it might be worth waiting until they cross that one-year threshold before selling.

I'm dealing with a similar situation with my sister's crypto investments, and from what I've learned, you're actually in a pretty good position with that documentation you mentioned having since 2019. One thing that hasn't been mentioned yet - make sure you're calculating the cost basis correctly for each of your brother's purchases. Since he's been making weekly $65 investments, you'll need to track the purchase price of Bitcoin at each transaction date to determine his individual cost basis for each "lot" of Bitcoin purchased. This becomes important because when he sells, you'll need to determine which specific Bitcoin purchases are being sold (FIFO, LIFO, or specific identification method) to calculate the actual capital gains or losses accurately. Also, since you mentioned you're not currently working, be aware that even though the Bitcoin sale will appear on your tax return, the actual tax liability should really be your brother's responsibility. You might want to have a clear agreement with him about covering not just the taxes owed, but also any additional tax preparation costs since this complicates your return significantly. The joint vs. separate filing question is tricky, but as others mentioned, joint filing is almost always more beneficial. The key is making sure your brother understands he needs to reimburse you for the full tax impact on your household.

Just wondering - does anybody know if the IRS has some kind of whistleblower program? I know someone who brags about how they only report like half their cash business income on taxes and it's really frustrating watching them buy expensive stuff while complaining about "being broke" at tax time.

This is a really interesting discussion! As someone who's been researching tax compliance for a small business I'm considering, I've learned that the IRS also uses data analytics to identify patterns across similar businesses in the same geographic area. They can compare your reported income to other cash businesses of similar size in your zip code or city. If you're significantly below the average, it raises flags for potential audit. They also track things like business license renewals, health department inspections, and even parking meter data in some areas to estimate foot traffic and correlate it with reported sales. What's really eye-opening from this thread is how many different angles the IRS can approach this from - it's not just about the money trail, but about creating a complete picture of business activity from multiple data sources.

When calling the agency on the 1099-G, ask them specifically about the "payer" section. Sometimes states issue these for things besides unemployment - like lottery winnings, state incentives, or special programs. My mom got one for a state energy rebate program she participated in and was freaking out thinking it was fraud.

Just to add another perspective - before jumping to identity theft conclusions, double-check if you received any state-level benefits or refunds in 2023 that you might have forgotten about. I got a 1099-G last year that turned out to be for a property tax rebate my state issued to homeowners. The key is looking at Box 1 (which shows the amount) and Box 2 (which shows any federal taxes withheld). If there's an amount in Box 1 but you're certain you never received that money, then yes, it's likely fraudulent unemployment benefits filed in your name. Also worth noting - if this IS unemployment fraud, don't wait to address it. The fraudsters often file tax returns quickly to claim refunds on the stolen benefits, which can complicate your own tax filing if the IRS already has a return on file for you.

Great question about cost segregation for smaller properties! I've actually done cost seg studies on properties ranging from $200k to $800k. The key is finding the right firm - some specialize in smaller properties and charge accordingly. For properties under $400k, I'd recommend getting quotes from multiple firms. Some charge a flat fee based on property size rather than a percentage of savings. I paid $2,800 for a $320k cabin and it identified about $68k in accelerated depreciation, saving me roughly $20k in taxes. The sweet spot seems to be properties with significant interior improvements, special electrical/plumbing systems, or unique features like commercial-grade appliances. Even smaller STRs often have these components that qualify for 5-7 year depreciation instead of 27.5 years. Don't let your tax preparer discourage you without getting an actual quote. Many firms will do a preliminary analysis for free to estimate potential savings before you commit to the full study.

This is an excellent discussion! I wanted to add a few important points from my experience with STR depreciation strategies: First, make sure you're tracking your properties correctly as business assets versus personal use. The IRS has specific rules about STR properties - if you use them personally for more than 14 days or 10% of rental days (whichever is greater), it affects your depreciation eligibility. Second, don't overlook Section 199A deductions in combination with bonus depreciation. Many STR operators qualify for the 20% pass-through deduction, and the increased depreciation from cost segregation can actually help you meet the income thresholds more easily. Finally, consider the timing carefully. With bonus depreciation phasing out, there's real value in getting those older properties amended sooner rather than later. I've seen people wait too long and miss the statute of limitations for certain years. One last tip - keep detailed records of when each property was "ready and available for rent" versus when you got your first booking. The IRS considers the "placed in service" date to be when it was ready for rental activity, not necessarily when you had your first guest. This can sometimes push you into a more favorable bonus depreciation year.