Code 571 is actually a relief to see! It means the IRS is releasing a previous hold on your return - basically undoing whatever caused the delay in the first place. You'll typically see this after there was a 570 code that put things on pause. Most people get their refund date (846 code) within the next weekly update or two after seeing 571. You're in the home stretch now! 🎉

571 is actually one of the best codes you can see! It means they're releasing whatever hold was on your account. I went through this exact same thing last year - had a 570 code for weeks that stressed me out, then boom, 571 appeared and I got my refund within 10 days. The IRS moves pretty quick once they release the hold. You should definitely see that sweet 846 code (direct deposit date) on your next transcript update! 🤞

Has anyone considered the gift tax implications here? If you're paying your kids above-market interest rates, the excess interest could potentially be considered a gift from you to them. My accountant flagged this for me in a similar situation.

This is a great discussion! One thing I'd add is to make sure you're documenting everything properly from the start. I learned this the hard way when my daughter borrowed money from me (opposite situation, but same principle). Keep records of: - The original source of funds in those joint accounts (was it allowance money, gift money from grandparents, etc.?) - A written loan agreement with clear terms, even if informal - Payment records showing principal vs. interest breakdown - Bank statements showing the transfers The IRS really cares about substance over form here. If your kids truly owned that money originally and you're paying them legitimate interest, then yes, it's taxable income to them. But if you were just moving your own money around between accounts, that's different. The key is being able to prove the economic reality of who owned what. Also worth noting - if your kids are minors and this pushes their income over the filing thresholds mentioned earlier, you might want to consider whether the tax complications are worth it compared to just keeping it as a family arrangement without formal interest payments.

Another quick tip - consider using an expense tracking app specifically for vacation rentals throughout the year. I use one called Stessa that connects to my credit cards and bank accounts. When I buy something, I immediately categorize it in the app as either an operating expense or a capital improvement/depreciable asset. Takes seconds and saves massive headaches at tax time!

I'm dealing with a similar situation with my vacation rental startup costs! One thing that might help is looking into Section 195 startup expense deductions. You can elect to deduct up to $5,000 in startup costs immediately (with the remainder amortized over 15 years), but this phases out if your total startup costs exceed $50,000. Since you mentioned spending $75k, you might not qualify for the immediate deduction, but understanding how startup costs vs. ongoing operating expenses are treated could help you categorize things properly. Items purchased to get the property "ready for guests" might fall under startup costs rather than regular rental expenses. Also, don't forget about the passive activity loss rules - even though you mentioned losses will carry forward, make sure you understand the $25,000 annual rental loss allowance if your AGI is under $100k. This could impact whether immediate expensing vs. depreciation matters more in your specific situation.

My parents were exactly like your mom - loyal TurboTax customers forever. What finally changed their mind was when the news broke about TurboTax deliberately hiding their free filing options and misleading customers. Remember that whole scandal? The company had to refund millions to users they tricked into paying. FreeTaxUSA has been around for over 20 years but they focused primarily on word-of-mouth rather than massive ad campaigns. That's why they seemed to "come out of nowhere" when they started gaining popularity. The main reason I trust them is they've never had major data breaches (unlike certain big-name tax services) and they're actually more transparent about their pricing.

I switched to FreeTaxUSA three years ago after getting tired of TurboTax's yearly price increases and aggressive upselling tactics. What sealed the deal for me was researching their background - they're actually TaxHawk Inc., founded in 2001 by a CPA named Brad Schwarzenbach in Utah. They've been profitable for years without venture capital funding, which explains why they can keep prices low without needing to maximize revenue per customer. The security concerns are totally valid, but they use 256-bit SSL encryption (same as online banking) and are SOC 2 Type II certified, which means they undergo annual independent security audits. They also don't sell your data to third parties - their revenue model is based on charging for state returns and optional services, not harvesting personal information. I've filed with them for complex situations including rental property income, stock sales, and multiple state returns. Never had an issue with accuracy or IRS acceptance. The interface isn't as flashy as TurboTax but it's actually more straightforward in some ways - less marketing fluff, more focus on getting your taxes done correctly.

I'm currently in week 3 after verifying my identity on March 18th, and finding this thread has been such a relief! Like so many others here, this was my first time ever getting the verification letter and I immediately thought I'd made some terrible mistake on my return. What's been most helpful from reading everyone's experiences is understanding that the "Where's My Refund" tool basically becomes useless during this period - I've been checking it daily and getting frustrated by the same "still processing" message, but now I know that's completely normal and it'll probably stay that way until everything suddenly processes at once. It's crazy how widespread these verification requests seem to be this year compared to previous years. I've talked to several people at work and it feels like at least half of us got hit with this. The IRS fraud prevention efforts are probably necessary, but the communication about realistic timelines could definitely be much better than the vague "up to 9 weeks" they mention. Based on all the real timelines shared here (mostly 5-8 weeks), I'm trying to set realistic expectations rather than hoping for a quick resolution. The waiting is definitely stressful when you're budgeting around that refund, but at least now I know I'm not alone in this process and that the long delays are unfortunately just the new normal. Thanks to everyone for being so open about sharing your experiences - it really helps to know what to actually expect during this frustrating waiting period!

I'm currently in week 2 after verifying my identity on March 28th, and this thread has been absolutely incredible for understanding what's actually happening! Like everyone else here, this was my first verification letter ever and I was completely convinced I'd made some major error on my tax return. The most frustrating part so far has been how the IRS website makes verification sound like a quick, routine security check, but then you're potentially looking at 2+ months of complete silence. The "Where's My Refund" tool has already been showing "still processing" for two weeks with zero helpful information, which based on everyone's experiences here seems to be totally normal but feels completely broken when you're living through it. It's honestly mind-blowing how widespread these verification requests have become this year. I've asked around my friend group and literally 8 out of 12 people who filed early got the same letter. Clearly the IRS has massively increased their fraud detection efforts, which is probably necessary given all the scams, but the communication about realistic timelines is pretty terrible. Reading through all the real experiences shared here (mostly 5-8 weeks total) has been way more helpful than anything on the official IRS website. I'm trying to mentally prepare for potentially 6+ more weeks of waiting, which is tough when you're budgeting around that refund, but at least now I have realistic expectations instead of hoping it would be resolved quickly. Thanks to everyone for being so open about sharing your timelines and experiences - it really helps to know we're all navigating this frustrating process together and that these long wait times are unfortunately just the reality right now!