Important point: You MUST file Form 8606 to report non-deductible contributions to traditional IRAs regardless of whether you convert them! This documents your basis so you don't get taxed twice. I learned this the hard way. If you've been doing backdoor Roth conversions without filing 8606s properly, you might want to amend those returns before a potential audit. The IRS has been paying more attention to Roth conversion strategies lately.

This is exactly why I always recommend getting a second (or third) opinion on complex tax situations! Your financial advisor is correct about the pro-rata rule applying. The IRS doesn't care which specific dollars you tell your brokerage to convert - they look at ALL your IRA balances together as one big pool. Here's what's happening: With $1.3 million in pre-tax IRA funds and only $7,000 in after-tax contributions, roughly 99.5% of any conversion will be taxable. The pro-rata calculation is: (Total after-tax basis ÷ Total IRA balance) × Conversion amount = Tax-free portion. Your tax specialist might be confused about the rules or thinking of a different scenario. I'd strongly suggest getting clarification from them about why they think it's not taxable. Also, definitely look into the reverse rollover strategy others mentioned - if your employer 401(k) accepts incoming rollovers, you could move that $1.3M there first, then do clean backdoor Roth conversions going forward. This is often the best solution for high earners in your situation.

I'm currently going through this exact situation and this thread has been a lifesaver! Filed 2/16, accepted 2/19, got the dreaded 570 code, and I'm now at day 72 with absolutely no movement. My refund is around $2,800 and I really need it for some home repairs that can't wait much longer. Reading all these success stories with congressional inquiries has given me the push I needed to stop waiting around. I called my representative's office yesterday and they immediately sent me the privacy release form - they said they handle these IRS cases all the time and that they've been seeing a lot more 570 code delays this year. What really convinced me was learning that it goes through the Taxpayer Advocate Service rather than the regular IRS phone system. I've tried calling the IRS directly about 15 times over the past month and either get disconnected or told to "wait the full processing time" without any real answers. For anyone still on the fence about this approach - the congressional staff I spoke with said these inquiries typically get assigned to a TAS advocate within 7-10 business days, and most cases see some kind of movement within 2-3 weeks. That's way better than the indefinite waiting game I've been stuck in. I'll update this thread once I hear back with results. Fingers crossed this actually works!

Thanks for starting this thread - I'm in almost the exact same situation and it's been really stressful! Filed 2/20, accepted 2/23, got the 570 code and I'm now at day 64. My refund is about $2,900 and I really need it for some unexpected dental work. Reading through all these success stories with congressional inquiries has been incredibly helpful and honestly given me hope for the first time in weeks. I had no idea that these inquiries go through the Taxpayer Advocate Service and get priority handling - that explains why so many people are seeing results when regular IRS calls lead nowhere. I've been putting off contacting my representative because I thought maybe I was being impatient, but seeing that so many others have gone this route after 60+ days makes me feel like it's the right move. The fact that multiple people got movement within 2-3 weeks is way better than this indefinite waiting. I'm going to call my congressman's office tomorrow morning and get that privacy release form started. Will definitely update this thread with my results since it seems like a lot of us are going through the same thing. Thanks again for sharing your experience and giving us all a roadmap forward!

Just a quick tip from someone who processes these requests at a financial institution - call your broker immediately rather than submitting online if possible. Explain that you're bumping up against the deadline and ask if there's any way to expedite. Sometimes we can push these through faster when there's a legitimate time crunch like a tax deadline. No guarantees, but it's worth asking! The phone rep might also be able to help you prepare everything correctly so it doesn't get delayed by errors.

I've been through a similar situation and wanted to share what worked for me. First, definitely file that extension (Form 4868) TODAY - you can do it online through the IRS website in about 10 minutes. This buys you until October 15th. Here's what I learned the hard way: even though your broker says 10 days, call them directly and explain you're facing a tax penalty deadline. Many brokers can expedite excess contribution removals when there's a legitimate time crunch. When you call, use the exact phrase "removal of excess contribution plus associated earnings for tax year 2023" - this ensures they code it correctly. Also, don't stress too much about the earnings calculation - your broker handles that automatically based on your account performance since the contribution date. Once you get the extension filed, you'll have plenty of time to complete the withdrawal and file the necessary forms (you'll need Form 5329 with your return to document the correction). The key is getting that extension filed immediately to stop the clock on the penalty deadline!

Don't forget that the IRS generally only resorts to levies after multiple notices over MANY months or even years. The collection process typically goes: notice of tax due → demand for payment → notice of intent to levy → actual levy. Each step usually has months between them with multiple letters. If you're at the "intent to levy" stage, you've likely received at least 3-4 notices already. They don't just suddenly decide to take your money. This is why ignoring those initial letters is so dangerous - by the time they're threatening levies, you've already missed several opportunities to resolve it more easily. This isn't meant to make anyone feel bad, just to emphasize that responding to the very first notice is ALWAYS the best approach.

I'm in a similar situation and just want to share what I learned from calling the IRS directly after getting my Notice of Intent to Levy. The 30-day deadline is real and starts from the date on the notice, not when you receive it. What surprised me was that the IRS agent actually walked me through several options I didn't know existed. Beyond the standard payment plan, they mentioned "partial payment installment agreements" for people who can't pay the full amount, and something called "Currently Not Collectible" status if you're facing genuine financial hardship. The key thing I learned is that ANY formal response within those 30 days - even just calling to discuss options - can pause the collection process while they review your situation. Don't wait until day 29 like I almost did. The earlier you respond, the more options you typically have available. Also, if you do set up a payment plan, make sure to ask for written confirmation that the levy process has been stopped. Get everything in writing!

I actually worked for one of these "tax resolution" companies for 3 months before quitting in disgust. The $9,500 quote is their standard starting point for 6+ years of returns, regardless of complexity. They're trained to scare people about IRS enforcement and push financing options that end up costing even more with interest. Your neighbor should look for an Enrolled Agent (EA) who specializes in back taxes. They typically charge $200-350 per back year for simple returns, and they're specifically licensed by the IRS to handle tax matters. The good news is the IRS is generally reasonable about payment plans. Once the returns are filed, your neighbor can likely set up a monthly payment plan with the IRS directly - often with much lower payments than what these resolution companies try to finance.

That $9,500 quote is absolutely predatory! I've been helping people with tax issues for years, and this is unfortunately a common scam targeting people who are already stressed about their situation. For straightforward 1099 income with minimal deductions, your neighbor should expect to pay around $200-400 per year for professional preparation. Even accounting for some complications with back taxes, the total should be nowhere near $9,500 - more like $1,500-3,000 maximum. Here's what I'd recommend: Tell your neighbor to hang up on these cold-callers immediately. Instead, he should contact the local IRS Taxpayer Advocate Service (it's free) or find a local Enrolled Agent through the IRS directory. Many EAs offer free initial consultations and can provide realistic cost estimates. The financing offer is another huge red flag - they're trying to lock him into payments for overpriced services. The IRS itself offers very reasonable payment plans once returns are filed, often with much lower monthly payments than what these companies are pushing. Your neighbor is lucky to have someone looking out for him. These companies specifically target older adults and people who are intimidated by tax issues.