Don't forget that the IRS has been cracking down on crypto reporting. They even added that question at the top of Form 1040 asking if you've dealt with virtual currency. Make sure whatever service you use, you answer that honestly and report everything. Not worth the risk of an audit just to save a few bucks on tax prep.

I've been using FreeTaxUSA for the past two years and can confirm it handles crypto reporting in their free federal filing. You'll need to manually enter your transactions on Form 8949 and Schedule D, but it walks you through the process step by step. The interface isn't as slick as TurboTax, but it gets the job done without charging extra fees for investment income. One tip - make sure you download all your transaction history from your exchanges before you start. Having your purchase dates, amounts, and sale prices organized will make the whole process much smoother. I keep a simple spreadsheet with all my crypto transactions throughout the year, which makes tax time way less stressful.

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.

Don't forget about the basis limitation rules under Section 704(d) too! Even if your at-risk amount allows you to take the loss, if your capital account goes negative, you might end up with a "suspended loss" that you can't use until your basis increases again. Partnership taxation is stupidly complicated. I strongly suggest working with a CPA who specializes in partnerships rather than trying to DIY this. The rules about basis, at-risk amounts, and passive activity losses can get extremely complex very quickly.

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.

Pro tip: set up your external account links before the refund hits so you can transfer immediately. Their daily transfer limit is like 10k btw

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

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!