I just went through this exact situation and I'm still in shock at how complicated it all is! 😱 • The IRS has MILLIONS of backlogged returns • They're STILL catching up from COVID delays • Some returns get randomly flagged for review • The same form can be sent MULTIPLE times (happened to me too!) • You should DEFINITELY still file this year's taxes • Your new return might actually help resolve the old one • I learned all this after hours of research I never imagined taxes could be this complicated! It's like you need a PhD just to get your own money back! 🤯

I'm so sorry you're going through this nightmare! As someone who's dealt with IRS delays before, I completely understand your frustration. Here's what I'd recommend based on what others have shared: 1. **File your 2023 taxes on time** - Don't let fear of the old issue create new problems. The IRS processes each year separately. 2. **Get your tax transcript ASAP** - This will show you exactly what codes are on your account and why your refund is stuck. You can access it online through the IRS website. 3. **Document everything** - Keep copies of those duplicate 60-day notices and note the dates you received them. 4. **Consider the Taxpayer Advocate Service** - If this is causing financial hardship, you can file Form 911 to get additional help navigating the system. The fact that you received the same paperwork twice suggests there might be a processing error on their end. When you do get through to someone, make sure to mention this duplication - it could be key to resolving your case. You worked hard for that money and you deserve to get it back! Don't give up - there are people here who've successfully resolved similar situations. 💪

I had this exact issue on February 8th, 2023. My DDD was 02/08/2023, SBTPG had taken their fees, and I had a trace number, but no deposit hit my account. After calling Wells Fargo on February 10th, 2023, they confirmed no pending deposits had been rejected. I then called SBTPG on February 13th, 2023, and after escalating to a supervisor, they discovered the ACH transfer had failed due to a system error on their end. They reprocessed it that same day, and I received my funds on February 15th, 2023. The key was getting to a supervisor at SBTPG who could actually see the failed transfer details and manually reprocess it.

This is such a common issue this tax season! I went through something similar with SBTPG and Bank of America last month. The trace number is actually a good sign - it means the IRS has successfully transmitted your cousin's refund to SBTPG. What I learned from my experience is that there's often a disconnect between SBTPG's systems and the receiving bank's processing timeline. In my case, Wells Fargo was holding the deposit for additional verification due to the third-party processor routing, which added 4 extra business days beyond the DDD. I'd recommend your cousin call Wells Fargo first to ask specifically about any pending ACH transfers from SBTPG or TPG - sometimes the bank can see pending deposits that haven't been released yet. If Wells Fargo shows nothing, then definitely escalate with SBTPG using that trace number as reference. The key is being persistent and asking for supervisors who can access the detailed transfer logs.

I just want to add some reassurance here - I've been through multiple IRS notices over the years, and the 12c letter is actually one of the easier ones to resolve. It's basically just a paperwork issue, not an accusation of wrongdoing. The fact that your CPA estimated $1,200 for 3 years but the IRS is billing $2,000 for one year suggests there might be more going on than just the missing Schedule 1. When you contact your CPA (which you should do TODAY), ask them to walk you through exactly what income sources they reported and how they calculated the tax liability. Also, don't let this experience discourage you from getting compliant with your taxes. Even if your CPA made some errors, you're still way better off having filed those returns than continuing to ignore them. The IRS is generally reasonable to work with when you're making a good faith effort to comply. One last tip: if your CPA is unresponsive or unhelpful about fixing their mistake, consider getting a second opinion from another tax professional. You shouldn't have to pay twice for the same work to be done correctly.

I went through this exact same situation about 6 months ago! Got a 12c letter asking for Schedule 1 to support some "other income" I had reported. Turns out my tax preparer had included the income amount on line 8 but completely forgot to attach the actual Schedule 1 form that explains what type of income it was. The good news is this is totally fixable and not as scary as it seems. Here's what worked for me: 1. I called my tax preparer immediately (don't wait!) and they admitted the mistake 2. They prepared the missing Schedule 1 at no charge since it was their error 3. I mailed it to the IRS with a copy of the 12c letter within 2 weeks 4. About 6 weeks later, I got a letter saying the matter was resolved The key thing is responding quickly - you typically have 30 days from the letter date. Don't let your CPA brush this off or charge you extra fees to fix their own mistake. As for the higher-than-expected bill, that's probably because the IRS can't properly calculate your tax without knowing what type of "other income" it is. Some types are taxed differently than others, and without the schedule, they might be defaulting to the highest tax treatment. Once you provide the missing form, they should recalculate everything correctly. You've got this! It's just a paperwork hiccup, not a major tax problem.

One thing nobody's mentioned - your uncle should check if his state offers any small business retirement or transfer tax incentives. Here in Pennsylvania, we have programs that provide tax breaks for long-term business owners selling for retirement. Also, make sure his accountant is considering his basis correctly. The $65k purchase price plus documented improvements of $270k should both count toward his basis. Sometimes accountants miss some of the capital improvements if they weren't all properly categorized over the years. And definitely get a second opinion! I got three different tax estimates when selling my landscaping business, with the amounts varying by over $40k between professionals.

Your uncle's situation is unfortunately very common with long-term small business owners. That $135k tax bill on a $675k sale actually breaks down to roughly 20% effective rate, which isn't as outrageous as it first appears when you understand the components. The key issue is that over 34 years, your uncle likely claimed hundreds of thousands in depreciation deductions on his tax returns - both on the original building/equipment and all those renovations. Every year he owned the business, these deductions reduced his taxable income, saving him money at his then-current tax rates. Now the IRS wants those tax savings back through "depreciation recapture" at 25%, plus regular capital gains tax (15-20%) on any remaining profit. It's not a penalty - it's the government collecting on tax benefits he received over three decades. A few suggestions: 1) Verify his accountant calculated the basis correctly (original $65k + documented $270k improvements should total $335k basis), 2) Consider if any improvements qualify for different depreciation schedules, 3) Explore installment sale options to spread the tax over multiple years, and 4) Definitely get a second opinion from a CPA who specializes in business sales. The silver lining is that without those annual depreciation deductions, his taxes would have been much higher every year he operated the diner.

Quick question - I'm facing a similar issue with my leased F-250 - does anyone know if TaxAct has a specific section for handling lease inclusion amounts for heavy vehicles? I can't seem to find it anywhere in the business vehicle section.

Just went through this exact same situation with my leased Ram 2500 last month! The key thing that helped me was realizing that in TaxAct, when you're in the vehicle section, you need to make sure you select "leased" rather than "owned" early in the process. Once you do that, it should give you the option to deduct actual expenses (your lease payments) rather than forcing you into depreciation calculations. If it's still asking for depreciation methods after you've indicated it's leased, try going back to the vehicle type selection and make sure it's properly categorized as a business lease. The software sometimes gets confused if you accidentally indicate mixed personal/business use or if the initial setup wasn't clear about the lease vs purchase distinction. For the inclusion amount that others mentioned - TaxAct should calculate this automatically once you've entered the vehicle's fair market value and lease terms correctly. You shouldn't have to do any manual calculations for that part.