Does anyone know if the IRS is still doing that first-time penalty abatement I've heard about? I'm in almost the identical situation (unfiled 2022-2023, self-employed) and wondering if that could help me?

Victoria, I completely understand that crushing anxiety - I was in your exact shoes 18 months ago with unfiled returns from my freelance graphic design work. The panic attacks were real, but I promise you this is absolutely manageable. Here's your immediate action plan: **STEP 1:** Contact your bank ASAP and request detailed statements for 2022-2023. Most banks can provide up to 7 years of records. Also check any business banking apps, PayPal, Venmo, or Zelle for transaction histories. **STEP 2:** Reach out to clients you worked with during those years. Many will still have records of payments made to you, and some might even have copies of invoices you sent them. **STEP 3:** Check your email for ANY business-related correspondence - contract confirmations, payment notifications, expense receipts, travel bookings, etc. This can help reconstruct your business activities. **STEP 4:** File those returns IMMEDIATELY, even if incomplete. The failure-to-file penalty is much worse than failure-to-pay, and it stops accruing once you file. For penalties: You're likely looking at 5% per month (max 25%) for failure-to-file, plus 0.5% per month for failure-to-pay, plus interest. But if you qualify for first-time penalty abatement, you can get one year's penalties completely waived. The IRS has payment plan options if you can't pay everything at once. Don't let fear paralyze you - every day you wait, the penalties grow. You've got this!

Just to add some perspective - I work at an accounting firm and see this ALL THE TIME. Adjustments can go either way, but most commonly it's because: 1. You made a math error 2. You claimed a credit incorrectly 3. You reported withholding differently than what your employer reported 4. They applied an offset from another debt 5. They found additional income reported to them that wasn't on your return The good news is they're processing your return and you're getting at least some refund. The explanation letter will arrive eventually, but their system is crazy backed up so don't be surprised if it comes after your deposit.

Don't stress too much about this! I've been through NYS tax adjustments multiple times and they're honestly pretty routine. The fact that you already have a deposit date scheduled is actually a good sign - it means they've finished reviewing your return and determined you're still getting money back. The most important thing is that you'll get that explanation letter before or around the time your refund hits. In my experience, common adjustments include simple math corrections, differences in reported income vs what employers submitted, or credits that needed verification. Sometimes the adjustment is even in your favor! Since you mentioned you're really anxious about it, you could try calling them directly if waiting for the letter is too stressful. But honestly, March 7th isn't that far away, and you'll likely have your answer soon. Try not to assume the worst - plenty of us have been in your shoes and it usually works out fine. Keep us posted on what the adjustment was once you find out! Good luck! 🤞

Has anyone actually been audited over 1099-K stuff for selling personal items? I'm in a similar boat with some sports memorabilia I sold last year. My understanding is that personal items sold at a loss aren't even supposed to be reported - like if you sell your old laptop for less than you paid, that's not income or a deductible loss.

I'm dealing with a very similar situation with Pokemon cards I sold last year! Got a 1099-K for about $8K but definitely sold at a loss overall. One thing that helped me was creating a spreadsheet breaking down my collection by era and card type - I used a combination of PSA population reports and old price guides from when I originally bought the cards (many from the late 90s/early 2000s). For cards I couldn't find specific historical data on, I used the "replacement cost method" - basically what it would have cost to buy similar condition cards at the time I purchased them. I kept screenshots and printed documentation of everything I used as sources. The key thing my tax preparer told me was that the IRS expects "reasonable effort" not perfection, especially for collectibles purchased over many years. As long as you can show you made a good faith attempt to establish your basis using available data, you should be fine. Don't let the 1099-K stress you out too much - it's just a reporting document, not a tax bill!

I've been through this exact situation before! The 810 and 570 codes together usually indicate they're doing an income verification review, especially common with self-employment income and EIC claims like yours. The March 17th processing date is actually a good sign - it means they have your return scheduled for completion around then. Since you're on cycle ending in '05, your transcript will only update on Friday mornings, so don't stress checking it daily. A few things that helped me when I was in refund limbo: • Keep checking your mail for any IRS letters (CP05, 4464C, etc.) • Your refund amount is still showing as the full $12,884, which means they haven't adjusted anything yet • Most income verification reviews resolve without needing additional documents from you I know the waiting is brutal when you're counting on that money. In my case, it took about 6 weeks total but I eventually got every penny. The IRS is just being extra careful this year with larger refunds involving self-employment income. Hang in there - that March 17th date gives me hope you'll see movement soon!

I went through almost the exact same situation last year with my self-employment income and EIC claim! The 810 freeze and 570 pending codes are definitely nerve-wracking, but in most cases they resolve without you having to do anything. From what I learned during my own refund delay, the IRS often does these income verification reviews on returns with significant EIC claims and self-employment income - which is exactly your situation. The good news is that your transcript still shows the full $12,884 refund amount, meaning they haven't found any issues that would reduce your refund. That March 17th processing date is actually encouraging. When I had similar codes, my transcript showed a processing date about 6 weeks out from when the review started, and my refund was released within a few days of that date. A couple things that helped ease my anxiety during the wait: • I only checked my transcript on Friday mornings (since you're on a weekly cycle ending in 05) • I watched my mail carefully but never received any letters requesting documents • The review resolved completely on its own after about 5 weeks I know it's incredibly stressful when you're counting on that money, especially with bills piling up. But try to stay optimistic - the vast majority of these reviews end with the full refund being released. Your return looks straightforward and legitimate to me!

I had success with my 2021 refund after waiting patiently. Filed in February 2024, received in April 2024. The key was having meticulous documentation. I created a folder with copies of all supporting documents. Included a cover letter explaining my late filing. Made sure every form was properly signed. Verified my direct deposit information three times. The effort paid off with a smooth process and no unexpected delays.

Different approach that worked for me: • Filed through a tax professional instead of DIY • Used Certified Mail with Return Receipt • Included Form 8822 to update address • Called the dedicated Prior Year Return hotline (not the main IRS line) • Requested Tax Advocate assistance after 60 days Result: 2021 refund processed in 7 weeks instead of the quoted 16 weeks. Anyone tried this combination?