Do you know if most tax pros are willing to do this kind of "review and submit only" service? I always assumed they wanted to do the whole return from scratch. How did you find one willing to just handle the e-filing part?

Most independent tax professionals (not the big chain places) are flexible with their services. I called a few local accountants and asked specifically if they would review and e-file my completed return for a reduced fee. Three out of four said yes. The key is to be upfront about what you want. Just call and say "I've already completed my tax forms but need someone to review them and handle the e-filing process. Do you offer this service and what would you charge?" The chains like H&R Block usually have fixed packages, but independent CPAs and enrolled agents are often willing to customize their services to what you actually need.

I had the same experience. Free File Fillable Forms actually messed up calculating my student loan interest deduction last year. The numbers didn't transfer properly between forms and I almost submitted with errors.

That's exactly the kind of issue I ran into! The worst part was that I didn't catch it until the very end of the process when reviewing the final calculations. By that point I'd already spent hours entering everything. I think I'll try one of the options mentioned above this year. Either getting a tax pro to handle the e-filing part or trying that taxr.ai service that converts the PDFs. Anything to avoid the buggy free forms again!

Thanks for this perspective! So if I understand correctly, I need to make sure I return the full $3,200 before December 31st, and get some kind of written confirmation from them that they won't issue the 1099-NEC? Is there any specific form or documentation I should ask for?

Yes, return the full amount before December 31st if you want to avoid the 1099-NEC entirely. Ask them for a receipt or formal acknowledgment of the returned payment that specifically states the date and amount returned, and that no 1099-NEC will be issued for this transaction. There's no specific IRS form for this situation, but you want something on company letterhead that clearly documents what happened in case you're ever questioned about it. Also, keep your own records - bank statements showing both the initial payment received and the return payment you made. Having a paper trail from both sides provides the best protection.

This is the most sensible comment here. Plus if you return the money... you don't have the money anymore! Why give up $3,200 just to avoid some paperwork and maybe a few hundred in taxes? That makes no financial sense.

That's really helpful, thanks! Do you know if I need to include any special forms besides Schedule D for the capital loss carryover? And will Free File guide me through that process?

You'll need Form 1040 (the main tax return), Schedule D (Capital Gains and Losses), and possibly Form 8949 (Sales and Other Dispositions of Capital Assets) depending on your specific situation. These forms work together to document your capital loss carryover. Yes, the IRS Free File program will guide you through completing these forms. Most Free File software will ask about capital losses from previous years and help you properly document the carryover. Just make sure you have your previous year's tax return handy so you can accurately enter the carryover amount.

Did you end up losing the deduction completely or were you able to fix it somehow?

Does this tax credit thing work in all states? I'm in California and about to trade in my car next month. Would be nice to avoid paying property tax on both vehicles.

The trade-in tax credit works differently state by state. California actually doesn't have a personal property tax on vehicles like many other states do - they have a VLF (Vehicle License Fee) which operates differently. In states with actual property tax on vehicles (like Virginia, Missouri, etc.), the trade-in often ends your tax liability for the traded vehicle, but you'll need to notify the county. In California, your registration fees are adjusted when you transfer or sell, but you need to file a Notice of Transfer with the DMV within 5 days. The dealer should handle most of this paperwork for you during the trade-in process.

Yep, documentation is key! I lost my trade-in paperwork and had to pay the full year tax on a car I only owned for 3 months. Lesson learned the hard way.

Thanks for this advice! I'm working on my response letter now and will definitely format it with clear headings. Did you also include a table or some kind of visual that showed the duplicate income side by side? I'm trying to make it as obvious as possible.

Yes! A simple table was incredibly helpful. I created a three-column table: first column had the income source, second column showed where it appeared the first time (W-2 or 1099), and third column showed where it appeared the second time. I also included the exact dollar amounts and highlighted that they were identical. Another tip - make copies of EVERYTHING before you send it. I had to reference my submission during a follow-up call, and having copies of exactly what I sent made the conversation go much more smoothly. The IRS representative appreciated that I could tell them precisely what page to look at.

This is gold! Thank you for sharing this insider info. I'm dealing with a similar notice and would never have known to ask for this specific code. Does this work for regular CP2000 notices too or just the CP3219A?