Glad to hear you figured out the timeline issue with your two 1095-A forms! Just a heads up - when you're filling out Form 8962 for your amended return, make sure to enter the information from both forms in the correct months. The form has columns for each month, so you'll input the January-May data from the first form and the June-December data from the second form. Also, double-check that the policy numbers are different between the two forms - that's another way to confirm they're for different coverage periods rather than one being a correction. If you run into any issues with the math on the 8962 (it can get tricky with mid-year plan changes), don't hesitate to reach out here again. Good luck with your amendment!

Another thing to keep in mind when filing your amended return - make sure to check Box C on Form 1040X to indicate you're making changes due to "Forms, schedules, or worksheets" since you're adding the 8962. This helps the IRS understand why you're amending. Also, if you received any advance premium tax credits during the year (which would show in column B of your 1095-A forms), you might end up owing money back or getting additional refund depending on your final income versus what you estimated when you enrolled. The 8962 reconciles all of this. One last tip - keep copies of both 1095-A forms with your tax records. Even though you're filing them with your amendment, having your own copies can be helpful if the IRS has any follow-up questions later.

Has your cousin checked if any of the money might actually be interest that accumulated while the property was being held by the state? Many states add interest to unclaimed property, and that interest component would definitely be taxable as interest income (reported on Schedule B). I had unclaimed property from an old bank account and when I got it back, about 30% was actually interest that had accumulated. I had to report that portion separately on my taxes.

This is such a complex situation! Given the amount involved ($67k), I'd strongly recommend your cousin take a multi-pronged approach: 1. **Document everything**: Keep all paperwork from the unclaimed property claim and the check itself 2. **Contact multiple sources**: Try both the state unclaimed property office AND the acquiring healthcare group (they may have inherited records from the original employer) 3. **Set aside taxes immediately**: Even if she's not sure of the exact treatment, putting aside 25-30% for potential taxes is smart 4. **Consider professional help**: With this much money at stake, a tax professional consultation could save her significantly more than it costs One thing that hasn't been mentioned - if this was from a healthcare employer, it could potentially be related to malpractice insurance refunds, continuing education reimbursements, or even profit-sharing distributions that were never claimed. Each of these would have different tax implications. The key is getting clarity on what type of payment this was originally. Once she knows that, the tax treatment becomes much clearer. Don't let the complexity paralyze her - start with setting aside money for taxes and gathering information, then work with a professional if needed.

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.

Just so you know, there's a way to check if you have a pending offset without calling. Go to your tax transcript and look for Transaction Code 898. If you see this code with a future cycle date, it means an offset is pending. Also, make sure you're calling the right offset number: 800-304-3107. The automated system should tell you if you have any NEW offsets, not just historical ones. In your case, since the message is referring to the exact date and amount from last year, it's almost certainly just showing your history, not a new offset. Once a debt is paid via offset, it's marked as satisfied and removed from the active offset list.

Just a warning about the TOP offset - sometimes they don't take the full amount in one year if it would leave you with less than $3,500 of your refund. Could that be what happened? Like maybe they took partial payment last year and are coming for the rest this year? For example, if your refund was $7,375 last year and your debt was $4,300, they would take $3,875 to leave you with exactly $3,500. Then they'd come after the remaining $425 this year.

Random question - what tax software are you using for the partnership return? I've found some handle liquidating distributions with negative capital accounts better than others.

I dealt with a very similar situation last year and want to emphasize something that might not be immediately obvious - make sure you're also considering the partnership agreement's liquidation provisions. In our case, we had language that specifically addressed how negative capital accounts should be handled upon liquidation, which affected whether the departing partner had a restoration obligation. Also, don't forget to check if your partnership has made a Section 754 election or if you should consider making one now. When a partner with a negative capital account liquidates, there can be significant inside basis adjustments that affect the remaining partners. In our situation, failing to make the 754 election would have resulted in a built-in loss that the remaining partners couldn't benefit from. One more thing - document everything thoroughly. The IRS tends to scrutinize these liquidating distributions, especially when there are negative capital accounts involved. We kept detailed records of the partner's capital account history, the reasons for the liquidation, and all the calculations. This saved us during an audit two years later.