I'm in a very similar situation and this entire discussion has been incredibly enlightening! I had a lock-in letter issued in 2018 after some filing compliance issues, and I've been stuck with Single-0 withholding for over 6 years now despite being fully compliant since 2021. Like many of you, I'm getting massive annual refunds ($19K last year!) that represent money I could really use throughout the year instead of giving the IRS an interest-free loan. I had completely given up hope that this situation could ever change, assuming it was just permanent consequences for my past mistakes. Reading through all these success stories has been a game-changer. The fact that multiple people have successfully gotten their lock-in letters removed after demonstrating 2-3 years of sustained compliance gives me real hope for the first time in years. Your collective advice about persistence with finding the right IRS specialist, thorough documentation, and specific language like "undue hardship" provides such a clear roadmap. I'm particularly encouraged by @Maxwell St. Laurent's situation since it mirrors mine so closely - multiple years of non-filing initially, but then consistent compliance with large refunds proving the withholding is excessive. The advice about requesting account transcripts, wage & income transcripts, AND return transcripts to build a comprehensive compliance picture is invaluable. I'm planning to call the IRS next week armed with all this knowledge. After 6+ years of accepting this situation, I'm finally ready to fight for getting my proper withholding back. Thank you all for sharing your experiences and turning what seemed impossible into an achievable goal!

I'm in almost exactly the same boat as you, Maxwell! Had a lock-in letter issued back in 2019 after falling behind on multiple years of filings, and I've been stuck with Single-0 withholding ever since despite being fully compliant for the past 4 years. Getting $16K+ refunds annually while struggling with cash flow throughout the year has been incredibly frustrating. This thread has been absolutely life-changing for me - I genuinely thought this lock-in letter was something I'd have to live with forever as punishment for my past mistakes. Seeing so many people successfully get theirs removed after demonstrating sustained compliance gives me hope for the first time in years. What I'm taking away from everyone's experiences is that the key factors are: 1) Finding the RIGHT IRS specialist who actually understands lock-in letter procedures (not just general reps), 2) Thorough documentation showing 2-3 years of consistent compliance, and 3) Being persistent throughout the process. I'm going to start by gathering all my tax transcripts (account, return, and wage & income) to verify everything looks correct, then call the IRS specifically asking for someone who handles lock-in letter removals. The advice about using "undue hardship" language in the written request and emphasizing how the excessive withholding is no longer serving its intended purpose seems crucial. Thanks to everyone who shared their success stories here - you've provided a clear roadmap for what seemed like an impossible bureaucratic maze. Time to finally take action instead of just accepting those massive overwithholdings!

I'm new to this community and currently dealing with my first offset situation. My 2023 refund was supposed to be $5,400 but they're offsetting $2,100 for some old state tax debt that got transferred to the Treasury Offset Program. I saw the 898 code appear on my transcript two days ago and have been frantically checking for updates ever since. This thread has been incredibly helpful and reassuring! Reading everyone's experiences - especially the consistent 7-14 day timeline after the 898 code appears - gives me hope that my remaining $3,300 should come through soon. I was initially panicked thinking the entire refund would be held up indefinitely, but it sounds like that's rarely the case. I'll keep watching for that 846 code with the actual deposit date that everyone mentions. Thank you all for sharing your detailed experiences and timelines - it's helping so many of us navigate this stressful process for the first time!

I'm new to this community and currently going through my first offset experience. My 2023 refund was supposed to be $6,780 but they're taking $2,450 for unpaid quarterly estimated taxes from my consulting business in 2022. I just noticed the 898 code appeared on my transcript yesterday and immediately started panicking about delays. Finding this thread has been such a huge relief! Reading through everyone's detailed experiences - especially James's 7-10 day timeline and Jabari-Jo's similar business tax situation - gives me so much hope that my remaining $4,330 should come through within the next week or two. I was convinced the offset would freeze my entire refund for months, but it sounds like that's not typically how it works. I'll be watching obsessively for that 846 code everyone mentions. Thank you all for sharing your experiences and creating such a supportive discussion - it's helping so many of us first-timers understand what to expect during this stressful process!

Has anyone successfully used TurboTax for handling RSUs? I've been getting different answers each year and I'm not sure if it's calculating everything correctly.

This is such a common problem with RSU taxation! I went through the exact same issue and found that many companies struggle with properly reporting RSU withholding on W-2s, especially when vesting happens near year-end. One thing that helped me was creating a simple spreadsheet tracking each vesting event throughout the year. For each vest, I recorded: the vesting date, number of shares that vested, FMV per share on that date, number of shares withheld for taxes, and the dollar value of those withheld shares. At year-end, I could easily calculate the total tax withholding that should appear in Box 2 of my W-2. Also, don't overlook Box 12 on your W-2 - sometimes companies report additional information about RSU withholding there with codes like "V" or other employer-specific codes. And definitely check if your company provides a supplemental RSU tax statement - mine sends one each January that breaks down all the vesting events and associated tax implications for the year. The fact that you've had consistent tax bills for 3 years strongly suggests there's a systematic reporting issue. I'd recommend documenting everything before approaching HR so you can present them with specific numbers rather than just a general concern.

As someone who's been through a similar situation with unfiled returns, I want to echo what everyone has said about this being more manageable than it initially seems. The anxiety and fear are completely understandable, but taking action is always the right choice. One thing I haven't seen mentioned yet is that your cousin should also check if her employer(s) from 2019 are still in business and can provide duplicate W-2s if needed. Sometimes tracking down old tax documents can be one of the biggest hurdles, but employers are required to keep payroll records for several years. Also, if she had any major life changes in 2019 (like medical expenses related to her situation, moving costs to escape the relationship, etc.), these could potentially be deductions that would reduce any amount owed. A good tax professional will know to ask about these circumstances. The most encouraging thing from reading all these responses is how many people have successfully navigated similar situations. Your cousin has already shown incredible courage in leaving a toxic relationship and rebuilding her life - handling this tax issue is just another step in that journey, and she's clearly got the strength to see it through. Tell her that this internet stranger is rooting for her, and that seeking help now rather than continuing to worry is absolutely the right move!

I'm really moved by how supportive and knowledgeable everyone has been in this thread - it's exactly the kind of community response that can make such a difference when someone is facing a stressful situation like this. As a newcomer to this conversation, I wanted to add that your cousin might also want to look into whether she qualifies for any innocent spouse relief if she was married during 2019 and filed jointly in previous years. While it sounds like she was single for the unfiled return, understanding all her options could be helpful. One thing that really stands out from reading everyone's experiences is how much the voluntary disclosure aspect matters. The IRS genuinely does treat people differently when they come forward on their own versus when they're contacted first. Your cousin's proactive approach, combined with her consistent filing since 2019, puts her in a really good position. I'd also suggest that when she does meet with a professional, she should ask about setting up a payment plan even if she doesn't end up owing much. Having that conversation upfront can provide peace of mind and show the IRS she's committed to resolving everything properly. The strength it takes to rebuild after an abusive relationship is immense, and handling this tax situation is just another part of that healing journey. She's clearly got people who care about her and a community here willing to help with advice and support!

This is such a common misconception in the restaurant industry! I've seen so many BOH staff miss out on potentially higher earnings because they believe this myth about "server taxes." The reality is that the tax code treats all income the same - whether you make $50k from hourly wages or $50k from a combination of wages and tips, your tax liability is identical. What creates confusion is that tipped employees often have more complex payroll situations where taxes are withheld differently, making their paychecks appear smaller even though their total take-home (including cash tips) is usually higher. Your coworker might also be thinking about FICA taxes on tips, but even those are the same rate as regular wages - 7.65% for Social Security and Medicare combined. The only "special" thing about tip taxation is the reporting requirements and allocation rules that ensure proper compliance. I'd suggest showing your coworker actual tax calculations with the same total income from both scenarios. Sometimes seeing the numbers side-by-side is the only way to overcome these persistent industry myths.

This is a perfect example of how misinformation spreads in the restaurant industry! I've been working in food service for over a decade and have seen this exact misconception cost people money. Your coworker is completely wrong about there being a special "server tax." All income is taxed identically regardless of source. What they're probably confused about is the withholding process - when you're a tipped employee, your tiny hourly wage often gets completely eaten up by taxes on your combined wage+tip income, leaving you with $0 paychecks. This makes it LOOK like you're being taxed more heavily, but you're actually just prepaying taxes on your tip income. Here's what I always tell people: if a line cook makes $40k annually and a server makes $40k annually (wages + tips combined), they will owe the exact same amount in taxes. The server just might get smaller paychecks because more tax is being withheld upfront. The real kicker is that experienced servers usually make significantly MORE than kitchen staff, which means they pay more total tax dollars simply because they earn more money. But their effective tax rate on the same income would be identical. Show your coworker some actual tax calculations with equal total income - that's usually the only thing that breaks through this persistent myth.