Has anyone here tried using the IRS's "OIC" (Offer in Compromise) instead of a payment plan? I've been seeing ads about "settling your tax debt for pennies on the dollar" and wondering if that's legit or just marketing garbage.

Thank you so much for all this helpful information! I just got off the phone with my aunt and uncle and we were able to get them set up with a payment plan through the IRS website. The online application was actually much easier than I expected - took about 20 minutes and they got instant approval for a 36-month plan. We decided to have them make a partial payment today (about $1,000 of the $4,500 they owe) to reduce the interest charges, and they'll pay the remaining balance at $120/month. The setup fee was only $31 since they chose direct debit, which was way better than the $149 fee for other payment methods. One thing I learned that might help others - make sure to keep a copy of the payment plan agreement they email you! The IRS agent I spoke with (yes, I actually got through after waiting 45 minutes) said people sometimes forget their payment dates or amounts and having that paperwork makes it easier to stay on track. Really appreciate this community for the quick responses when we were in panic mode. Filing separately from paying was something I had no idea about before today!

Filed March 3rd, got my refund March 20th through Cross River/Chime. But my transcript showed "refund approved" on March 15th with a DDD of March 22nd. So I got it 2 days early, not 5. I think Chime oversells that 5-day early thing tbh.

Filed March 11th with Chime/Cross River and just got my deposit this morning! I was in the exact same boat as you - checking WMR obsessively and getting frustrated with the "still processing" message. What finally helped was getting my transcript from the IRS website (took a few tries to verify my identity but eventually worked). The transcript showed way more detail than WMR and had actual codes that explained what was happening. Mine had been sitting in a verification queue for nearly two weeks. The key thing I learned is that the 5-day early deposit only kicks in once the IRS actually releases the funds and sets a direct deposit date - Chime can't work magic if the IRS hasn't approved your return yet. Hang in there, it sounds like a lot of people who filed around the same time as us are finally getting their deposits this week!

I'm confused by all of this tbh. Last year I got a $120 settlement check with no 1099 at all, and the year before I got one with a 1099 that had nothing written on it about taxes. Why is there no consistency??

The inconsistency you're seeing is actually pretty normal with class action settlements. Each settlement administrator and their legal counsel make independent decisions about tax reporting based on the specific nature of that settlement. Some factors that affect whether you get a 1099: - Settlement amount (many don't issue 1099s under $600) - Type of damages being compensated - How cautious the administrator wants to be - Whether the settlement clearly falls into taxable vs non-taxable categories Your $120 settlement without a 1099 was probably either under their reporting threshold or clearly determined to be non-taxable from the start. The one with the blank 1099 sounds like they were being extra cautious but didn't have specific tax guidance to include. Bottom line: if you don't get a 1099, you generally don't need to report it. If you do get one with a note saying it's not taxable, keep the documentation and follow their guidance. The settlement administrators usually have tax attorneys making these determinations, so their guidance is typically reliable.

I'm dealing with a similar situation with multiple 1099-MISC forms from poker tournaments. One thing I learned from my tax preparer is that you should double-check the box that's marked on your 1099-MISC forms. Some casinos incorrectly report tournament winnings in Box 3 (Other Income) when it should be in Box 1 (Rents, Royalties, Other Income), or vice versa. The box doesn't change how you report it on your return (it all goes to Schedule 1, Line 8 as "Other Income"), but it can help you verify the casino reported it correctly. Also, make sure they didn't accidentally include any rake or tournament fees in the reported winnings amount - those should be deducted from your gross winnings before the 1099 is issued. For your bad-beat jackpot specifically, that's definitely taxable income regardless of how the jackpot was funded. The IRS sees it as gambling winnings, period. Keep those Excel records detailed and consider adding the specific table/seat position for the bad-beat event - it helps establish the legitimacy of that particular win if you're ever questioned about it.

Great discussion here! I went through a similar situation last year with poker tournament winnings and wanted to share a few additional tips that helped me navigate this successfully. One thing I didn't see mentioned is that if you're a recreational player like the original poster, you need to be careful not to accidentally classify yourself as a professional gambler. The IRS has different rules for pros - they can deduct losses as business expenses on Schedule C, but they also have to pay self-employment tax on their winnings. As recreational players, we report winnings as "Other Income" and can only deduct losses as itemized deductions up to our winnings amount. Also, regarding the bad-beat jackpot situation - I had a similar payout last year and initially tried to argue it wasn't really "winnings" since we all contributed to the pot. My accountant quickly set me straight: the IRS doesn't care about the funding mechanism. If you receive money from a gambling establishment and they issue you a 1099-MISC, it's taxable gambling income, period. One last tip for record keeping: I use a simple smartphone app to log my sessions right at the table. Takes 30 seconds and includes GPS location automatically. Way easier than trying to remember details later for that Excel sheet. The contemporaneous records really matter if you ever get audited. Stay organized and you'll be fine. The IRS actually expects gambling losses among recreational players - they just want to see that your claimed losses are reasonable and well-documented relative to your reported winnings.

Just an FYI - if your 2023 amended return isn't processed before you file for 2024, you might get a notice from the IRS about the discrepancy. Don't panic if this happens! Just respond with a copy of your 2023 amended return and explain the situation. I had something similar happen with NOL carryovers a few years back. The IRS computer system flagged the discrepancy, but once a human reviewed my explanation, everything was fine. The key is to keep good records and be consistent with how you're handling the error correction.

I went through almost the exact same situation two years ago with my capital loss carryovers getting "lost" in TurboTax. It's incredibly frustrating when you discover these errors right before the filing deadline. One thing I learned is that you should double-check ALL your prior year carryovers - not just capital losses. Look at things like charitable contribution carryovers, business loss carryovers, and any education credits that might carry forward. When tax software has an issue with one type of carryover, it sometimes affects others too. Also, when you're preparing your amendment, take screenshots or print copies of the relevant pages from your software showing the error. This documentation can be helpful if you need to contact the IRS later or if there are any questions about your amendment. The good news is that once you get this sorted out, you'll have a much better understanding of how carryovers work, and you'll probably catch any similar issues much earlier in future tax years. I now manually verify all my carryovers every year before filing, regardless of what the software says.