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Has anyone else noticed that this seems to be happening more often lately? I'm a freelance developer and THREE of my clients messed up my 1099s this year. One was off by almost $8k. I'm wondering if there's some new accounting software that's causing these errors.
I work in accounting and you're actually onto something. Several popular small business accounting platforms changed how they track contractor payments in the last update. If businesses didn't reconfigure their settings properly, it's causing exactly these kinds of errors.
This is such a frustrating situation but you're definitely not alone! The expense reimbursement issue that StarGazer101 mentioned is probably exactly what happened. I've seen this mistake so many times - companies treat reimbursements as contractor payments in their accounting systems. Here's what I'd suggest for your next steps: 1. Send them a formal email (not just a phone call) listing out each expense reimbursement separately from your actual service payments. Be very specific about dates and amounts. 2. Reference IRS guidelines that expense reimbursements under an accountable plan should NOT be included in Box 1 of a 1099-NEC. 3. Give them a reasonable deadline (like 10 business days) to issue a corrected 1099-NEC. 4. If they refuse, you're not stuck! You can still file correctly by reporting the full 1099 amount on Schedule C line 1, then deducting those same reimbursed expenses on the appropriate expense lines of Schedule C. The key is keeping meticulous records of everything - your original invoices showing the separation between fees and reimbursements, receipts for the expenses, and all your correspondence with the company. Don't let this stress you out too much. The IRS deals with 1099 discrepancies all the time, and as long as you have good documentation, you'll be fine!
Have you thought about seeing if you qualify for the IRS Free File program or trying to e-file? I know when you're many years behind it seems like paper is the only option, but some tax software can still e-file returns from 2020.
This is incorrect. You cannot e-file tax returns from 2020 in 2025. The IRS e-file system only accepts returns for the current tax year and two years prior. For 2020 or earlier, paper filing is the only option now.
Just want to echo what others have said about making copies and using certified mail - this is absolutely critical when filing old returns! I made the mistake of not doing this with a 2019 return I filed late, and when the IRS claimed they never received it, I had no proof of mailing. One additional tip: consider including a cover letter with your return explaining that this is a late filing for 2020 and briefly stating why you're filing late. While it won't eliminate penalties, it can sometimes help with penalty abatement requests later if you have reasonable cause. Also, if you owe money, try to pay as much as you can when you file - even a partial payment will stop the failure-to-pay penalty from accruing on that portion. The IRS is generally more willing to work with taxpayers who are making a good faith effort to get compliant, so filing now (even though it's very late) is definitely better than continuing to avoid it.
This is really solid advice about the cover letter! I hadn't thought about explaining the situation upfront. Do you think it matters what specific reason you give for filing late, or should you keep it general? I'm worried about saying the wrong thing and making my situation worse. Also, when you mention penalty abatement - is that something you request at the time of filing or do you have to wait until after they process the return and assess the penalties?
I've been through the verification process three times in the past five years. In 2019, it took 8 weeks. In 2022, it took 5 weeks. This year, it took just over 3 weeks. My experience suggests that processing times have improved, but it still varies quite a bit. One thing I've learned is that checking your account transcript is more helpful than the Where's My Refund tool - the transcript will show code changes before WMR updates. Also, if you verified online rather than by mail or phone, you'll typically see faster processing.
Just wanted to share my recent experience since you're going through this right now. I completed my identity verification on February 28th and got my refund deposited on March 25th - so exactly 25 days total. Like others mentioned, the key is checking your transcript regularly on the IRS website rather than just relying on Where's My Refund. I saw my 570 code appear after about 2 weeks, then 571 about a week later, and DDD showed up 3 days after that. The 9-week timeframe is definitely their worst-case scenario to manage expectations. Since you mentioned this is your first time filing after divorce, make sure all your personal info matches exactly what the IRS has on file - any discrepancies can add delays. Hang in there, it's likely going to be much faster than 9 weeks!
Thanks for sharing your timeline! That's really helpful to know. I'm curious - when you mentioned checking the transcript on the IRS website, is that the same as the "Get Transcript" tool? I've been looking at Where's My Refund but sounds like I should be checking somewhere else for better updates. Also, about the personal info matching - since this is post-divorce, I'm wondering if there are any specific things I should double-check beyond just name and address?
The IRS systems are such a mess rn... one status means something different every other day i stg š¤”
fr fr its like they making this up as they go š
I experienced the exact same thing! Mine changed from "not processed" to "not available" about 2 weeks ago and I was panicking thinking something went wrong. But then last Friday I checked and boom - DDD appeared with a deposit date for this week! The "not available" status seems to be their way of saying they're actively working on it. Definitely check daily because once it updates, things move fast. Good luck! š¤
CosmosCaptain
Back in 2021, I had the same issue with changing 'as of' dates. What I learned is that this indicates your return is actively being worked on in batches. The IRS processes returns in weekly cycles, and the 'as of' date is when your account is scheduled for the next processing cycle. If you verified in person on 2/26, you're about 4 weeks into what can be a 6-9 week process post-verification. I'd expect to see movement by mid-April based on current processing patterns.
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Kolton Murphy
I'm going through the exact same situation right now! Filed on 2/8, verified identity in person on 2/28, and my 'as of' date has changed from 3/4 to 3/11 to 3/18 and now shows 4/1. My transcript still shows absolutely nothing for 2023. It's so frustrating because the IRS2Go app just keeps saying "still processing" with no real timeline. I've been checking daily and it's honestly making me more anxious. Has anyone here actually gotten through to speak with an IRS representative about this specific issue? I'm wondering if calling would even help or if they'd just tell me to wait longer.
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