I just went through almost the exact same scenario. One other thing to consider - if your grandfather is elderly or in poor health, it might actually be more advantageous from a tax perspective to inherit the property rather than receiving it as a gift. With an inheritance, you get a "stepped-up basis" to the fair market value at the time of death, which eliminates all the capital gains that accrued during his lifetime. Not a pleasant thing to think about, but it can make a massive difference tax-wise.

One thing that hasn't been mentioned yet is the potential impact of depreciation recapture if your grandfather has been claiming depreciation on the property (if it was used as a rental or business property at any point). Even with the primary residence exclusion, any depreciation taken would need to be "recaptured" and taxed at 25% when you sell. Also, make sure to get a professional appraisal when the gift transfer happens to establish the fair market value for gift tax purposes. The IRS can challenge valuations that seem too low, especially on high-value properties like this. Given the complexity and the dollar amounts involved, I'd strongly recommend consulting with both a tax professional and an estate planning attorney before making any decisions. The potential tax savings from getting this right could easily pay for the professional advice many times over.

I had a very similar experience with a CP2100A notice last year, and I want to echo what others have said about responding promptly and keeping detailed records. The IRS data entry errors seem to be increasing, but they're generally fixable with the right approach. One thing I haven't seen mentioned yet is that you should also check if this affects any state tax filings you might have made. Some states cross-reference federal 1099 data, so if the IRS thinks there's an error, it could potentially trigger issues at the state level too. I'd recommend pulling your state account transcripts (if available online) just to make sure there aren't any corresponding notices coming your way. Also, since you mentioned this is a 1099-NEC you issued to yourself from your sole proprietorship, you might want to double-check with a tax professional that this is the correct approach for your situation. As someone else pointed out, sole proprietors typically don't issue 1099s to themselves - this might be part of what's causing the confusion in the IRS system. The good news is that once you send your response with the correct documentation, these usually get resolved without too much hassle. Just make sure to keep copies of everything and use certified mail so you have proof of delivery.

I've been dealing with IRS notices for years as a tax preparer, and I want to add a few important points that might help you and others in similar situations. First, regarding the timing - while most people mention the 60-day response window, I always recommend responding within 30 days if possible. The IRS processes responses faster when they're received promptly, and it shows good faith effort on your part. Second, when you write your response letter, be very specific about the alleged errors. In your case, mention exactly which letter is supposedly missing from your first name and which digit of your TIN they claim is wrong, then clearly state what the correct information should be. This level of detail helps the IRS agent processing your response understand exactly what needs to be corrected in their system. Third, I'd strongly recommend including a brief statement like "I request that you update your records to reflect the correct information as submitted on the original form" rather than just sending the documentation without explicitly asking for the correction. Finally, about issuing 1099-NECs to yourself from a sole proprietorship - this is indeed unusual and likely incorrect unless you have a very specific situation involving multiple business entities. A sole proprietorship and the individual owner are the same entity for tax purposes, so you typically wouldn't issue yourself a 1099. This might actually be contributing to the IRS system flagging your forms as suspicious. I'd definitely recommend consulting with a qualified tax professional to review your business structure and filing approach.

Great question! I've been in the same boat before. For sensitive tax documents, I'd definitely recommend going with established services like eFax or HelloFax rather than free options - the peace of mind is worth the small cost. One tip that saved me a lot of stress: before sending your actual documents, send a test fax to the IRS number with just a cover sheet asking them to confirm receipt. Most IRS offices will fax back a confirmation if they receive it. This way you can verify the fax number works and your service is transmitting properly before sending the important stuff. Also, always call the IRS directly to get the correct fax number for your specific situation - they have different numbers for different types of documents and regional offices. Using the wrong number is probably the #1 reason people think their fax "didn't go through" when it actually went somewhere else entirely.

I've had good experiences with both eFax and MetroFax for sending tax documents to the IRS. What I really appreciate about MetroFax is that they provide a detailed delivery report showing the exact time of transmission and confirmation that all pages went through successfully. One thing I learned the hard way - always double-check that your documents are properly oriented and readable before sending. I once sent a 10-page document that was rotated 90 degrees and the IRS couldn't process it, which delayed my case by weeks. Most online fax services have a preview feature that lets you see exactly how your pages will look when transmitted. Also, if you're sending multiple documents in one fax, include page numbers and a table of contents on your cover sheet. This helps the IRS processors organize everything correctly on their end. The small details really make a difference when dealing with government agencies!

I feel obligated to mention a cautionary note regarding verification timelines. Per Internal Revenue Manual 21.9.1.3, identity verification should be processed within 9 weeks, but I've observed numerous cases where this timeline was exceeded without notification to the taxpayer. In one particularly concerning case from last tax season, a client submitted verification on February 3rd and received no updates until May 27th - nearly 16 weeks later. The IRS cited "exceptional processing circumstances" but provided no further explanation. According to Taxpayer Advocate Service Report 2023-1, approximately 18% of verification cases exceed standard processing times. I strongly recommend documenting all verification submission dates and following up proactively if the 9-week mark passes without resolution.

Thank you for sharing your timeline, Diego! As a fellow military family member, I completely understand the frustration of waiting on government processes. From what I've been reading in various tax forums and based on conversations with others who've gone through ID verification this season, your February 17th submission date puts you right in the thick of peak verification season. The IRS verification department seems to be processing in waves, and many people who submitted in mid-to-late February are just now starting to see movement. I'd suggest checking your online account transcript (if you haven't set one up yet) rather than relying solely on WMR - it tends to update faster and gives you more detailed information about where your return stands in the process. From what I've observed, once verification clears, the actual refund processing moves pretty quickly. Hoping you see some positive movement soon!

I may have some relevant information to share. My verification was completed on February 20th, and I received my refund on March 8th, which was approximately 16 days later. It seems the timeframe might be somewhat consistent based on what others have shared here. I checked my transcript every few days and noticed the 846 code appeared about 3 days before the deposit hit my account. I believe the system follows a fairly standard process unless there are additional complications with your return.

Based on everyone's experiences here, it looks like you're right in the normal timeframe window. I completed ID verification on February 25th and got my refund on March 15th - exactly 18 days later. The key thing I learned is that patience is really your only option during this phase. The IRS systems seem to process post-verification returns in batches, which explains why some people get theirs in 9 days while others wait the full 21. Since you're at day 15 and documented everything so well, I'd suggest checking your transcript one more time for any new codes, then waiting about 5-6 more days before calling. The fact that you completed verification online and got confirmation is a good sign - it means you're definitely in the queue.