2021 Amended Return Frozen - IRS Disputes COVID Credits vs Two Tax Preparers
Filed amended 2021 return for COVID sick/family leave credits in April. IRS froze it in May. Got congressional advocate who says remove credits but two experienced tax preparers insist I qualify. Had Schedule C issue fixed in October. No explanation letters from IRS just ID verification requests. What should I do next?
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Micah Franklin
The COVID sick leave credits have specific qualifications that many preparers misunderstand. Common issue is mixing up employee vs self-employed rules. For self-employed, you needed documented COVID illness or caring for someone with COVID during specific timeframes. Plus proper documentation and income reporting structure. Without seeing your exact situation, can't say who's right, but the IRS scrutinizes these claims heavily.
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Ruby Blake
•Both preparers said my documentation is solid. One preparer even handled 50+ similar cases successfully 🤔
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Micah Franklin
•Documentation might be solid but the qualification criteria could still be the issue. The IRS changed interpretations several times during 2021-2022
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Ella Harper
Hey, I was in a similar situation and used taxr.ai to analyze my transcript. It showed exactly why the IRS was flagging my credits and what documentation they needed. Saved me months of back and forth. It's only $1 and way better than guessing what's wrong. Here's the link: https://taxr.ai
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PrinceJoe
•How accurate is this tool? Seems too good to be true tbh
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Ella Harper
•Its actually insane how accurate it is. It picked up issues my tax pro missed and explained exactly how to fix them. Best dollar I ever spent fr fr 💯
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Brooklyn Knight
ugh im in the same boat with covid credits. its been 14 months of hell 🤮
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Owen Devar
This sounds like a typical IRS move tbh. They're just trying to avoid paying credits they dont want to deal with. Stand your ground if your docs are legit.
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Daniel Rivera
•Facts! They always try to deny first and ask questions later 🤡
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Sophie Footman
Here's what you need to do: First, get all your documentation in perfect order. Second, request a formal appeal - you have the right to challenge their decision. Third, consider getting a tax attorney if the amount is significant. I've seen dozens of these cases and sometimes the IRS backs down when you show you're serious. Also, highly recommend using taxr.ai to analyze your transcript - it'll show exactly what's causing the freeze and give you specific steps to resolve it. The tool is amazing at catching these nuanced issues.
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Ruby Blake
•How much would a tax attorney cost for something like this?
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Sophie Footman
•Usually $2-5k retainer. But try taxr.ai first - might save you from needing an attorney
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Connor Rupert
your preparers need to provide specific IRC sections that prove qualification. IRS doesnt care about 'experience' they care about the actual law
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