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Hey Lena! π I completely understand your stress - tax season with kids is already overwhelming without mysterious IRS codes adding to the chaos! From my experience (and what I've learned lurking in this community), Code 971 is actually one of the more common codes and usually isn't cause for panic. It simply means the IRS has generated or will generate a notice to mail to you. The key is looking at what OTHER codes appear around the same timeframe on your transcript. Here's what to look for: β’ If you see a 570 code nearby, that's just a temporary hold (routine) β’ An 846 code means your refund is being issued β’ Scary codes would be 420 (examination) or 810 (freeze) With three kids, it's very likely this is related to verifying your Child Tax Credit or Earned Income Credit amounts - totally normal processing stuff. The physical notice should arrive within 5-7 business days of the date shown on your transcript. I know it's easier said than done, but try not to stress too much! In my experience, if there was a real problem, there would be multiple concerning codes and it would be pretty obvious. Most 971 notices end up being minor math corrections or simple confirmations that everything is processing normally. You've got this, mama! πͺ And definitely update us when you get the actual notice - this community loves hearing the "false alarm" stories!
This is such a helpful breakdown, Noah! As a newcomer to this community, I really appreciate how you've laid out exactly what codes to look for and what they mean. The way you've organized it makes it so much easier to understand than trying to decipher the IRS website! I'm dealing with my first confusing transcript codes this year, and reading explanations like this from experienced community members is honestly a lifesaver. The part about it likely being related to Child Tax Credit verification makes so much sense - I never thought about how having multiple kids might trigger routine verification processes. Thanks for taking the time to explain this so clearly and for the encouragement! It's really comforting to know there are people here who understand the stress and are willing to help newcomers navigate all this. I'll definitely be bookmarking this response for future reference! π
Hi Lena! π As a fellow parent dealing with tax season stress, I totally get the anxiety that comes with seeing unfamiliar codes on your transcript! Code 971 is actually quite common and usually nothing to worry about. It simply means the IRS has issued (or will issue) a notice to your mailing address. The notice could be anything from a routine confirmation of processing to a minor adjustment - most of the time it's completely benign. Here's what I've learned from my own experiences and this helpful community: **What to check:** - Look for other codes around the same date on your transcript - Code 570 = temporary hold (routine processing) - Code 846 = refund being issued - Codes to worry about: 420 (audit) or 810 (account freeze) **With three kids, this is likely related to:** - Child Tax Credit verification - Earned Income Credit confirmation - Simple math corrections on dependent-related credits **Timeline:** The physical notice typically arrives 5-7 business days after the date shown on your transcript. I know juggling kids' schedules while trying to decode IRS mysteries is exhausting! But from what I've seen in this community, the vast majority of 971 codes end up being routine notices that require no action from you. Try not to add that extra grey hair just yet! π Keep us posted when the notice arrives - we're all rooting for it to be something simple!
This is exactly the kind of detailed, reassuring explanation I needed to see as someone new to this community! Thank you so much, Gavin! π I love how you've broken everything down into clear sections - it makes it so much easier to understand what to look for rather than just panicking at every code. The timeline information is especially helpful since I was wondering how long I'd be sitting here anxiously waiting for something to arrive in the mail. Your point about this likely being related to child tax credit verification makes total sense. I filed for three kids this year and honestly didn't even think about how that might trigger routine verification processes. It's so much less scary when you put it in that context! As a newcomer, I'm really impressed by how supportive and knowledgeable this community is. Reading through all these responses has honestly been more helpful than hours of trying to decode the IRS website. I'll definitely keep you all posted when the notice arrives - fingers crossed it's just routine paperwork! π
I'm dealing with this exact same situation right now! Made about $2,800 with Doordash last year and was hoping I could just ignore it since it wasn't much. But after reading everyone's responses here, it's clear I need to bite the bullet and report it properly. Quick question for those who've been through this - when you file Schedule C for the Doordash income, do you need to have an official business name or can you just put your own name? Also, I'm seeing mentions of Schedule SE for self-employment tax - is that in addition to regular income tax or does it replace part of it? Thanks for all the helpful info everyone. Better to do this right than deal with IRS letters later!
For Schedule C, you can absolutely just use your own name - no need for an official business name. Just put your name in the business name field or you can leave it blank and it will default to your name from your tax return. Regarding Schedule SE, the self-employment tax is IN ADDITION to regular income tax, not a replacement. So you'll pay both regular income tax on the profit AND self-employment tax (which covers Social Security and Medicare). The self-employment tax is roughly 15.3% of your net earnings from self-employment. It sounds scary but remember you can deduct business expenses like mileage to reduce that net earnings amount! Pro tip: If you made $2,800 and drove decent miles for those deliveries, the standard mileage deduction could significantly reduce your taxable income. Definitely try to reconstruct your mileage records if you didn't track them at the time.
Just wanted to chime in as someone who's been doing gig work for a few years now - definitely report that $3,000! I learned the hard way that the IRS has access to all the 1099 data that companies file, even if you don't receive the forms directly. Since you made over $600, Doordash was legally required to issue you a 1099-NEC. Check your email thoroughly (including spam folder) and log into your Doordash driver account - most companies send these electronically now. If you still can't locate it, the earnings section in your driver app should have your annual total. One thing that helped me when I was starting out with gig taxes was using a simple mileage tracking app going forward. Even though you've stopped driving for now, if you ever go back to it, apps like Stride or MileIQ can automatically track your business miles. For this year's taxes, try to reconstruct what you can from your delivery history - even a rough estimate is better than nothing and can save you significant money on that self-employment tax. The 15.3% self-employment tax might seem steep, but remember it's going toward your future Social Security and Medicare benefits. Plus, legitimate business deductions can really help reduce that tax burden!
As someone who works in public finance, I think it's important to understand that "shutting down the IRS" isn't really a binary on/off switch. Even the most aggressive reform proposals recognize that some form of federal revenue collection would need to continue. The more realistic scenarios involve restructuring how taxes are collected rather than eliminating federal taxation entirely. This could mean consolidating collection functions with other agencies, implementing different tax mechanisms (like the consumption taxes others mentioned), or significantly simplifying the current system. What's often overlooked is that the IRS also handles non-tax functions like processing economic impact payments, child tax credits, and other federal programs. Any replacement system would need to account for these administrative responsibilities too. The transition period would be the biggest challenge - you can't just flip a switch and change how $4+ trillion in annual revenue gets collected without massive preparation and coordination across all levels of government.
This is really helpful context! I hadn't thought about all those other programs the IRS administers. When you mention "consolidating collection functions with other agencies," what would that actually look like? Would the Department of Treasury just absorb those responsibilities, or are we talking about creating entirely new agencies? Also, I'm curious about the timeline - if there was serious political momentum behind major IRS reform, how long would you estimate a transition period would realistically need to be? Seems like the logistics alone would take years to work out properly.
@Eli Wang Great questions! For consolidation, we d'likely see functions split between existing Treasury departments and potentially new specialized agencies. Tax collection might go to a streamlined Treasury division, while benefit distribution could move to agencies like Social Security Administration or a new federal payments bureau. Regarding timeline - any major reform would realistically need 7-10 years minimum. You d'need 2-3 years just for legislative development and system design, another 3-4 years for technology infrastructure and staff training, plus 2-3 years for phased implementation with parallel systems running. The complexity is staggering - we re'talking about replacing systems that process over 240 million tax returns annually, handle trillions in transactions, and integrate with every state tax system, banks, employers, and other federal agencies. Even small changes to tax law typically take 2-3 years to implement properly. @Cassandra Moon s point'about non-tax functions is crucial - the IRS processes everything from disaster relief payments to healthcare subsidies. Any transition would need to maintain these critical services without interruption.
This discussion has been really eye-opening! As someone who's always just filed my taxes and hoped for the best, I never realized how interconnected the IRS is with so many other government functions. What strikes me most is the timeline aspect - 7-10 years for a major transition seems both reasonable given the complexity but also politically challenging. How do you maintain momentum for such a massive reform across multiple election cycles? I'm also wondering about the international implications that haven't been mentioned yet. How would foreign tax treaties work? What about Americans living abroad who currently deal with IRS requirements? Would whatever replaces the IRS need to maintain all those international relationships and agreements? The logistics seem almost impossibly complex when you really think through all the moving pieces. Makes me appreciate that our current system, however flawed, at least functions at this massive scale.
Not to make things more stressful, but you should also consider how this affects your financial aid for college! If your parents have been claiming you as a dependent, that probably affected your FAFSA and financial aid packages. Getting married changes your dependency status for financial aid purposes too, not just taxes. You'll be considered an independent student regardless of your age once you're married, which could significantly change your aid eligibility. Might want to check with your school's financial aid office about how this could impact any current or future aid.
This is such an important point that people overlook! I got married my junior year and didn't realize I needed to update my FAFSA. Actually ended up qualifying for more aid because they only looked at my income and my spouse's income (both low) instead of my parents' (much higher).
The advice here is spot-on about the tax implications, but I wanted to add something from personal experience. When I got married during college, I was terrified about having "the conversation" with my parents too. What helped me was framing it around the practical tax issues first rather than the emotional aspects of not telling them about the marriage initially. I started by saying something like "I need to talk to you about our tax situation this year because there are some changes that affect whether you can claim me as a dependent." Then I explained the marriage and how it impacts taxes. It gave us a concrete problem to solve together rather than just focusing on why I hadn't told them sooner. Also, definitely talk to your school's financial aid office ASAP like Justin mentioned. Being married made me independent for FAFSA purposes, and I actually got more aid because they only looked at my and my spouse's low incomes instead of my parents' higher income. But you need to update your status properly to avoid any aid complications down the road.
This is really helpful advice about framing the conversation! I'm definitely nervous about telling my parents, but you're right that focusing on the practical tax issues first might make it easier. I hadn't even thought about the FAFSA implications - that's actually a relief to know I might qualify for more aid as an independent student. Did you have to provide any special documentation to your school when you updated your status from dependent to independent after getting married?
Emma Wilson
Pro tip: If you can't get through on the phone, try reaching out to your local Taxpayer Advocate Service. They can sometimes help navigate tricky situations like this.
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StarSeeker
β’I've never heard of that before. How do I find my local Taxpayer Advocate Service?
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Emma Wilson
β’Just google 'Taxpayer Advocate Service' + your state. They should have contact info on their website. They're a lifesaver!
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Ruby Garcia
Another option to consider: if you have your old tax returns or W-2s handy, the IRS can sometimes verify your identity using info from those documents instead of relying on ID.me. When you call, ask specifically about alternative identity verification methods. I had a similar issue last year and they were able to walk me through it using my prior year AGI and some other basic info. Takes longer but it works!
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Aidan Percy
β’This is really good to know! I definitely have my old tax returns saved. Did they ask for specific line items from your return, or just the AGI? And about how long did the whole verification process take once you got someone on the phone?
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