I actually just went through this same process last month! Here's what worked for me: Call the main IRS Identity Verification line at 1-800-830-5084, but here's the key - call right at 7 AM when they open. I tried calling in the afternoon multiple times and was on hold for over 2 hours each time. When I called at 7 AM sharp, I got through in about 20 minutes. Have these ready before you call: - Your SSN - The appointment confirmation number/letter - A reason for why you're canceling (they will ask) The agent was actually really helpful and understanding. She canceled it immediately and gave me a confirmation number. The whole call took maybe 10 minutes once I got connected. One heads up though - if you still need identity verification done eventually, ask about rescheduling instead of outright canceling. I made the mistake of canceling completely and then had to start the whole appointment booking process over again weeks later when I realized I still needed it done for my tax return. 🤦‍♀️ Good luck! The system is definitely frustrating but the actual people are usually pretty reasonable once you get through to them.

Just wanted to add my experience to help others - I successfully canceled my IRS identity verification appointment last week! Called 1-800-830-5084 around 7:30 AM and got through in about 25 minutes. The agent was really professional and made the process super smooth. A couple of extra tips based on my call: - They'll ask for your appointment reference number, so definitely have that ready - The agent explained that if I need to reschedule later, I'd have to go through the whole booking process again (appointments are booking out 4-6 weeks currently) - She gave me a cancellation reference number and said to keep it for my records in case any issues come up One thing that surprised me - she actually asked if I was sure I wanted to cancel vs just reschedule, because apparently a lot of people call to "cancel" when they really just need a different time slot. Might be worth thinking about that before you call! Overall the actual cancellation was way easier than I expected once I got through. The horror stories about IRS phone service are real, but once you connect with someone they're usually quite helpful. Hope this helps! 🤞

I went through this exact nightmare scenario last month! Filed February 12th with my IP PIN, got the verification message on my transcript February 20th, and then nothing happened for weeks. Finally got letter 5071C on March 8th asking me to verify online. Completed that the same day, and my refund was approved exactly 9 days later. If you're on a tight timeline like I was (needed my refund for a medical procedure), just keep checking your mail daily. The frustrating part is you can't proactively verify - you have to wait for their specific instructions.

This is exactly what happened to me last year as a non-US citizen! I had my IP PIN, filed in early March, and still got hit with the verification requirement. The key thing I learned is that the IP PIN protects against identity theft during filing, but the IRS has separate algorithms that flag returns for additional review - especially for international filers like us. In my case, it was triggered by having foreign income on Form 1116. I waited about 16 days before receiving Letter 5071C, completed the online verification, and got my refund processed within 2 weeks after that. The waiting is the hardest part, but don't try to call - the verification department can't bypass their own timeline requirements. Just monitor your transcript daily for code 971 which means they've issued correspondence.

Just wanted to add one more consideration that might be relevant for your situation - the timing of when you actually made the loan during the tax year can matter. If you made the loan partway through the year, you'll need to determine your at-risk amount as of the end of the tax year, not when you first made the loan. Also, since you mentioned this is only your third year and you're not expecting profits until year five, make sure you're tracking your basis adjustments year over year. Each year's losses will reduce your outside basis, and you'll need to maintain detailed records to properly calculate your basis for future years when the partnership hopefully becomes profitable. One last thing - if your partnership has any nonrecourse debt (debt where partners aren't personally liable), that gets allocated differently and won't increase your at-risk amount the same way your direct loan does. Just something to keep in mind as your business grows and potentially takes on additional financing.

Great discussion everyone! As someone who's navigated similar partnership tax issues, I want to emphasize a few key points that might help clarify things for Grace and others in similar situations. First, the distinction between "outside basis" and "at-risk" amounts is crucial but often confusing. Think of it this way: your outside basis is like your "investment account balance" in the partnership (starts with capital contributions, adjusted for income/losses/distributions). Your at-risk amount is what determines how much loss you can actually deduct (includes capital contributions PLUS loans you've made to the partnership where you're personally liable). For Grace's situation: the loan to your partnership won't increase your outside basis, but it absolutely increases your at-risk amount, which should allow you to deduct losses that exceed your remaining outside basis. One practical tip I learned the hard way - keep a simple Excel tracker with separate columns for: (1) Outside Basis, (2) At-Risk Amount, and (3) any suspended losses. Update it every year after getting your K-1. This saved me countless hours when I eventually had to provide documentation during an IRS examination. Also, since you mentioned formal loan documents with interest rates - that's excellent! Just make sure the partnership is actually making those interest payments on schedule and reporting them properly. The IRS looks for substance over form, so the more your arrangement behaves like a real third-party loan, the better.

Just wanted to add - if you're comparing different refund advance options, also check out Jackson Hewitt and H&R Block. They sometimes have better approval rates depending on your tax situation. Credit Karma is solid but not always the best option for everyone. Also make sure you read the fine print on fees - some places charge for the advance even if it's "free

Been through this process twice now. The Credit Karma checking account is actually pretty decent - no monthly fees, decent app interface, and transfers to external banks usually clear within 1-2 business days. One heads up though: if you don't get approved for the advance, your regular refund will still be deposited to their account first before you can move it to your main bank, which adds a few extra days to the whole process. Make sure to have your external bank account already linked and verified before tax season hits to speed things up!

Call the TOP offset number (800-304-3107) - they can tell you exactly how much was taken and where it went. Better than waiting for the letter to explain everything

Just went through this exact situation last month! Got my offset notice and was so relieved to finally know my return was processed after months of "still processing" messages. Check your account transcript in about a week - mine updated with the processed date and showed exactly what was left after the offset. The waiting game is finally over once you get that letter!