I hate seeing so many people stressed about these codes! I had the exact same situation last year - 570 and 971 codes appeared together and I was panicking. Turned out the IRS just needed to verify my identity since I had moved and changed jobs. Got the CP05 notice about 10 days later asking for some documents, sent them in, and my refund was released 3 weeks after that. The whole process took about 6 weeks total but it wasn't as scary as I thought it would be. The key is to respond quickly once you get the notice and provide exactly what they ask for - no more, no less. Most of these reviews are really routine even though they feel terrifying when you're waiting. Try to stay calm and keep an eye on your mailbox! 🙏

I'm going through the exact same thing right now! Got my 570 and 971 codes on 02-24-2025 too and have been refreshing my transcript like crazy hoping for some movement. It's so frustrating not knowing what they're reviewing or how long it'll take. I called the IRS hotline yesterday but after being on hold for 2 hours they basically just told me to wait for the notice. The uncertainty is killing me because I have rent due next week and was really counting on this refund. Reading everyone's experiences here is both comforting and nerve-wracking - some people get resolved in 2 weeks, others are waiting months! I'm trying to stay positive but man, the IRS really needs to give us more transparency about what these holds are for. At least we're all in this together! 😤

Has anyone used QuickBooks for tracking these home office reimbursements in an S-corp? I'm trying to figure out the best way to handle the accounting part of this.

This is exactly the situation I found myself in when I switched from LLC to S-corp last year! One thing I learned the hard way is that you absolutely need to establish that Accountable Plan in writing BEFORE you start making reimbursements - don't just start paying yourself and figure it out later. I made the mistake of doing informal reimbursements for the first few months, and my accountant had to help me clean it up retroactively. Now I have a formal board resolution (even though I'm the only shareholder) that establishes the plan and specifies what expenses are covered, documentation requirements, and timing for submissions. For the home office calculation, I measure my dedicated office space monthly and keep a simple spreadsheet tracking utilities, mortgage interest, insurance, and maintenance costs. Then I apply my business percentage (about 12% in my case) and reimburse myself monthly. It's way more paperwork than the old Schedule C simplified method, but the tax benefits of the S-corp structure make it worthwhile. The key is treating yourself like any other employee - formal documentation, regular processes, and keeping everything at arm's length even though you own the company.

I've verified my identity with the IRS for three years in a row now, despite them saying it should be a one-time thing. Each time they hold my refund until I jump through all their hoops again. The system is completely broken. I've literally sent them the same documents year after year. my advice: just expect to verify every year and be pleasantly surprised if you don't have to.

Based on my experience and what I've seen from others, it really depends on several factors. Generally, ID.me verification should carry over year to year - that was the whole point of implementing it. However, certain triggers can require you to verify again: - Major changes in income or filing status - Moving to a new address - Adding new dependents or credits you didn't claim before - The IRS fraud detection system flagging something unusual Since your tax situation is similar to last year, you'll probably be fine. But honestly, the IRS system can be unpredictable. Some people go years without having to verify again, while others get flagged annually for seemingly no reason. My suggestion: go ahead and file. If they need verification, you'll get a notice or see it when you check "Where's My Refund." No point in worrying about it beforehand since there's nothing you can do to prevent it if their system decides to flag you.

Protip: Always keep a folder with ALL your tax docs, even the ones you think you don't need. You never know when the IRS is gonna come knocking! 📁💼

I went through this exact same situation a few months ago! The CP063 can be really stressful, but here's what worked for me: First, don't panic - you have time to respond. Second, gather ALL your income documents (W-2s, 1099s, bank statements, etc.) and compare them to what you reported. In my case, I had missed a small 1099-MISC from some freelance work. Once I found the discrepancy, I filed an amended return (1040X) and included the missing income. The whole process took about 6 weeks to resolve. If you can't find any missing income and think the IRS is wrong, you can dispute it, but make sure you have solid documentation. Good luck! 🤞

This confused me too last year! Here's what I learned: Standard deduction has NOTHING to do with MAGI. MAGI calculations happen BEFORE any standard or itemized deductions are applied. The sequence is: 1. Calculate total income 2. Subtract adjustments (IRA contributions, student loan interest, etc.) = AGI 3. Add back certain adjustments (like IRA contributions) = MAGI 4. THEN later you subtract standard/itemized deductions to get taxable income So no, MAGI is definitely not AGI plus all deductions. It's more like AGI plus SELECTED adjustments added back in.

Just wanted to share my experience as someone who went through this exact confusion last year! The key thing that helped me was understanding that MAGI isn't a single calculation - it changes depending on what you're using it for. For your specific situation with the health insurance marketplace, your MAGI will be your AGI ($42,300 after the IRA deduction) PLUS your traditional IRA contribution ($5,200) = $47,500. This is exactly what your tax software is showing you. The reason this matters for your premium tax credit eligibility is that the government wants to see your "true" income capacity before retirement savings, since theoretically you could choose not to contribute to an IRA and have that money available for health insurance premiums instead. At $47,500 income, you should definitely qualify for some level of premium tax credit depending on your location and the plans available. The credit phases out completely around $60,240 for a single person in 2024, so you're well within the eligibility range. Make sure to use the healthcare.gov calculator with your MAGI figure to get an accurate estimate of your subsidy!