Just wanted to add that I had the exact same codes (971 and 570) last year when I filed in February. Like others mentioned, it was just a routine review - they were verifying my dependent information since I had claimed my nephew for the first time. The waiting is definitely the hardest part, but try to stay patient. One thing that helped me was setting up IRS2Go app notifications so I could check my transcript status without constantly logging into the website. Also, make sure your address is current with the IRS since they'll be mailing you that notice. In my case, the review took exactly 21 days from the 971 date, and then everything processed normally. The notice I received was pretty straightforward and just confirmed they had verified my information. Your situation sounds very routine based on what you've described!

I've been helping people with transcript codes for years, and the 971/570 combination you're seeing is honestly one of the most routine ones during tax season. The IRS is essentially saying "we got your return, we're taking a closer look at something, and we'll send you a letter explaining what." Since you filed in February and the 971 is dated 04-15-2024, you're right on schedule for a typical review. The cycle code 20240805 indicates normal processing, not an audit or major issue. Most likely scenarios: they're verifying your W-2 data matches what employers reported, double-checking any credits you claimed (especially if you have kids or claimed education credits), or confirming your filing status. The key thing is that 570 holds usually release automatically once their systems verify everything matches up. You'll see a 571 code appear when the hold lifts, followed by a refund date within a few days. Based on your timeline, I'd expect movement in the next 1-2 weeks. The notice you receive will be pretty basic - usually just confirmation that they reviewed and approved your return.

I've been dealing with this exact situation and wanted to share what I learned from my research and talking to a tax professional. The key thing to understand is that there's a difference between selling personal items at a loss (which most garage sale items are) versus selling collectibles that have appreciated in value. For your garage sale items, if you're selling personal belongings for less than what you paid, there's generally no tax consequence. The IRS considers these personal losses, which aren't deductible but also aren't taxable income. For collectibles that have increased in value, you do need to report the gains. The tricky part about not having receipts is real, but the IRS allows "reasonable estimates" of your cost basis. You can research what similar items sold for when you originally bought them using price guides, auction records, or inflation calculators. One thing that surprised me: collectibles are taxed differently than stocks - they're subject to a maximum 28% rate rather than the lower long-term capital gains rates. So it's worth tracking these separately. As for whether the IRS will "come after you" for small amounts - while technically all income should be reported, enforcement resources are typically focused on larger discrepancies. That said, with new 1099-K reporting requirements lowering to $600 in 2025, there will be more paper trails for online sales.

I went through this same headache last year with vintage comic books and old Magic cards I'd been collecting since high school. What really helped me was keeping it simple and focusing on the bigger picture. For garage sale stuff, honestly most of it you're probably selling at a loss anyway - that old furniture, random household items, clothes, etc. Those don't need to be reported since you're not making a profit. For the collectibles where you might have actual gains, I found that researching historical prices wasn't as hard as I expected. For baseball cards, the Beckett database goes back decades and you can usually find price ranges for different years. Same with vintage toys - there are collector sites that track values over time. The key thing I learned is that the IRS isn't expecting perfect records for stuff you bought years ago. They want to see that you made a reasonable, good faith effort to estimate your basis. I kept a simple Excel sheet with my research sources and called it a day. One practical tip: if you're selling online and getting close to that $600 threshold where you'll get a 1099-K, it might be worth organizing your records now rather than scrambling later. But for small cash sales at yard sales? The enforcement risk is pretty minimal for occasional sellers like us.

The two 570 codes with the same date is definitely unusual - I've been following tax stuff for years and typically see just one 570 when there's a hold. This could indicate your return triggered multiple review flags simultaneously. The 971 notice will be key to understanding what specific documentation they need. In my experience, EIC reviews with dependents usually focus on verifying custody/residency requirements. Check your mail daily and respond quickly to any IRS correspondence - that's the fastest way to get these holds released. The April date for your EIC suggests they're planning to process it, they just need to complete their verification first.

I see you have dual 570 codes which is pretty rare - this usually happens when your return hits multiple verification checkpoints at once. With your EIC amount and the fact that you mentioned having 2 kids, the IRS is likely verifying both your income eligibility for EIC and your dependent qualifications. The 971 notice will spell out exactly what they need from you. Don't panic about the duplicate codes - I've seen this before with larger EIC claims and it doesn't necessarily mean there's a problem, just that they're being extra thorough. Keep checking your mail for that notice and respond promptly with whatever documentation they request. Your April 16th EIC date suggests they fully intend to process it once verification is complete.

Anyone know if TurboTax handles this ESPP situation correctly? Last year it seemed to mess up my cost basis and I ended up having to manually override some numbers.

Just wanted to add my experience as another data point - I had a very similar ESPP situation last year where I sold shares at a price between my discounted purchase price and the original FMV. The key thing that helped me understand it was realizing that the IRS essentially treats ESPP transactions as if you received the discount as regular compensation income, then immediately purchased the shares at full market value. So in your case, it's like the IRS views it as: you received $1.28 per share in compensation income, then bought shares at $8.56, and are now selling at $7.69. Hence the ordinary income on the discount plus the capital loss on the difference. One practical tip: make sure to keep detailed records of your grant dates, purchase dates, and the FMV on both dates. You'll need these for proper reporting, especially if you have multiple ESPP purchases throughout the year. The brokerage statements don't always make this clear.

This is such a helpful thread! I'm in a similar situation with a property in the Philippines that I inherited from my parents about 8 years ago. I've been renting it out and reporting the income, but I'm considering selling it now. One thing I'm curious about - since this was inherited property, do I use the fair market value at the time of inheritance as my basis, or do I need to go back to what my parents originally paid for it decades ago? And if it's the fair market value at inheritance, which exchange rate do I use - the one from when they passed away or from when the property was officially transferred to me (which took about 6 months due to probate)? Also, has anyone dealt with the situation where the foreign country requires you to pay their capital gains tax before you can transfer the proceeds out of the country? I'm wondering how that affects the timing of when I need to report everything to the IRS.

This is such a valuable discussion! I'm dealing with a similar situation with property in Germany that I bought in 2008. One thing I'd add that hasn't been mentioned yet - make sure you keep detailed records of any improvements or renovations you made to the property over the years. These can be added to your basis and reduce your capital gains. Also, if you've been depreciating the property on your US returns, remember that you'll need to use the depreciation amounts you actually claimed (or were allowed to claim, whichever is greater) when calculating the depreciation recapture, not necessarily what you should have claimed. For anyone dealing with properties in EU countries, be aware that some countries have withholding requirements where they'll hold back a percentage of the sale proceeds to cover potential tax liabilities. You can usually get this refunded later, but it affects your cash flow timing. Germany withheld about 25% of my sale proceeds and it took 8 months to get the refund after filing their tax return. The currency exchange impact is real - in my case, the Euro had strengthened against the dollar since 2008, so even though the property only appreciated modestly in Euro terms, my dollar-based capital gain was much larger than expected.