One important thing nobody mentioned - if you did a 401k to Roth conversion and owe taxes, you might be able to spread the tax impact across 3 years if this happened during the COVID period (2020-2021). Worth checking if that applies to your situation! Saved me from a huge tax bill all at once.

This is exactly the kind of situation that trips up a lot of people! Don't worry, you're not alone in finding this confusing. The key thing to remember is that when you convert from a traditional 401k to a Roth IRA, you're essentially moving money from a pre-tax account (where you got a tax deduction when you contributed) to an after-tax account (where withdrawals in retirement are tax-free). The two different 1099-R forms with different distribution codes are the IRS's way of tracking the different parts of this transaction. Make sure to enter both forms exactly as they appear in TurboTax - the software is designed to handle this scenario and will walk you through it step by step. One tip: double-check if your employer withheld any federal taxes from the conversion. If they didn't withhold enough to cover the tax you'll owe on the conversion, you might want to make an estimated tax payment to avoid underpayment penalties. Good luck with your taxes!

DO NOT ignore the levy - it will only get worse! Trust me on this. I ignored my tax issues and ended up with wage garnishment where they took 25% of my paycheck directly from my employer. Super embarrassing and made it even harder to pay bills. Contact them ASAP and make SOME kind of arrangement. Even a small payment plan is better than nothing. They just want to see you're making an effort.

I completely understand your panic - I went through something very similar about 18 months ago. The good news is that you're taking action now, which is the most important step. Here's what worked for me: First, gather all those unopened letters (I know it's scary, but you need to see what they're saying). Then call both the IRS at 1-800-829-1040 and your state tax department. Be honest about your financial situation and ask about installment agreements. For your $5,500 federal debt, you should easily qualify for a streamlined payment plan without having to provide extensive financial documentation. The monthly payment will likely be around $75-100 depending on what you can afford. Regarding your car - while they technically could seize it, it's extremely unlikely for a debt this size, especially once you're in a payment agreement. They much prefer predictable monthly payments over the hassle of asset seizure. The $100 levy you experienced is actually their way of getting your attention. Once you establish payment plans and start making regular payments, the collection activities will stop. You've got this - the hardest part is making that first phone call, and you're already mentally preparing for it!

Has anyone been having issues with the Tax Pro Account portal lately? We switched to having our admin submit all our POAs online last month, but we've had several get stuck in "processing" status for weeks.

I've been dealing with this delegation question for months and finally got clarity from the IRS directly. Your assistant can absolutely submit Forms 2848 and 8821 through the portal using their own account, but there are some key points everyone should know: 1. The assistant doesn't need a PTIN, but they must indicate they're submitting "on behalf of" the practitioner during the upload process 2. You as the practitioner must still review and e-sign all forms before your assistant submits them 3. Keep detailed records of who submitted what and when - the IRS can audit your submission practices One thing I learned the hard way: make sure your assistant understands the common rejection reasons. We had a 40% rejection rate initially because of small errors like missing check boxes or incorrect entity classifications. Now we use a standard checklist and our success rate is over 95%. The online submissions are definitely faster than mailing to CAF - usually processed within 5-7 business days versus 4-6 weeks by mail. Just make sure you have proper internal controls documented in case the IRS ever questions your procedures.

I was in a very similar situation with my nephew a couple years ago. One thing that helped me was keeping a detailed monthly expense log showing what I spent on his care - groceries, clothes, school fees, medical copays, etc. It made it much easier when tax time came around to prove I was providing more than half his support. Also, don't forget about potential state tax benefits too! Some states have additional dependent exemptions or credits that could save you even more money. The federal rules generally apply to state taxes as well, but it's worth checking your specific state's requirements. The fact that you're covering all her expenses and she's been with you since August should put you in a good position to claim her. Just make sure to get that Form 8332 signed by your sister before you file - it's much easier to get it upfront than to deal with complications later if the IRS has questions.

I'm a tax professional and want to emphasize something important that hasn't been mentioned yet - make sure you understand the "tie-breaker" rules if your sister decides she wants to claim your niece too. Since your niece isn't your child, the normal custodial parent rules don't apply here. In cases where multiple people could potentially claim the same dependent, the IRS has specific tie-breaker rules. For a qualifying relative (which is what your niece would be), the person with the higher adjusted gross income gets to claim the dependent. So if your sister's AGI is higher than yours, she would have the right to claim your niece even if you provided more support. However, given that your sister lost her job and isn't contributing financially, your AGI is likely higher, which would give you the right to claim your niece. Still, it's crucial to have that conversation with your sister upfront and get everything documented properly to avoid any IRS headaches later. Also, consider consulting with a tax professional for your specific situation - the dependent rules can get complex when dealing with relatives rather than your own children, and professional guidance could save you from potential issues down the road.

I'm really sorry you're dealing with this stress - CP22A notices can be overwhelming, especially when the amount increases! Based on what others have shared here, it sounds like the IRS found additional issues during their review of your amendment, which is unfortunately common. From reading through these experiences, it seems like the most important first step is understanding exactly WHY they increased the amount. The notice itself might be vague, but you have a few options to get clarity: 1) Call the IRS directly using the number on your notice - multiple people here mentioned this was crucial for getting specific explanations 2) Request your account transcript online at irs.gov to see line-by-line what they changed 3) Several folks mentioned using taxr.ai to analyze the notice and identify specific issues The key thing is don't wait too long - you typically have 30 days to respond, and interest keeps accumulating regardless. Many people here were able to reduce their amounts significantly once they understood what documentation the IRS was looking for. Also consider reaching out to the Taxpayer Advocate Service if you're facing financial hardship or have been trying to resolve this for a while without success. They're an independent organization that can help navigate these situations. You've got options here - this isn't the end of the road! Take a deep breath and focus on understanding what specific changes they made first.

I completely understand your stress about the CP22A notice - it's one of the more confusing IRS notices to receive, especially when the amount goes UP instead of down after your amendment! A CP22A essentially means the IRS reviewed your amendment but made additional changes beyond what you originally disputed. The increased amount typically happens because they either rejected some of your amendment claims AND found other issues during their review process. Here's what I'd recommend as your immediate next steps: 1) **Get your account transcript ASAP** - Log into irs.gov and pull your account transcript for that tax year. This will show you line-by-line exactly what changes they made to your return. 2) **Call the IRS within a few days** - Use the phone number on your CP22A notice. Yes, the wait times can be brutal, but you need to understand specifically WHY they increased the amount. Don't guess - get the exact reasons from an agent who can see your account notes. 3) **Gather your documentation** - Once you understand their reasoning, collect all supporting documents for the items they're disputing. This might include receipts, forms, or calculations they didn't accept from your amendment. 4) **Know your timeline** - You typically have 30 days from the notice date to formally respond or request an appeal. Interest continues to accrue during this time, so don't delay. The good news is this is absolutely disputable if you have proper documentation. Many people successfully reduce these amounts once they understand what specific evidence the IRS needs to verify their claims. Don't panic - focus on understanding the specifics first, then you can decide whether to appeal, provide additional documentation, or work out a payment arrangement.