Hey Sophie! I'm also new to this community and just joined after finding myself in almost the exact same situation. I received a late 1099-NEC for some consulting work about two weeks after filing my taxes, and I've been losing sleep over it ever since! This thread has been incredibly helpful - I had no idea that the IRS automatically receives copies of all 1099s and runs matching checks against our filed returns. That completely eliminates any temptation to just "include it next year" since they'll definitely catch the discrepancy. What really stood out to me was @Samantha Johnson sharing the actual penalty amounts from her experience. While nobody wants to pay extra fees, knowing it's not going to be thousands of dollars in penalties makes this feel much more manageable. I'm also going to follow the advice about waiting for my refund before filing the amendment. The waiting is stressful, but it sounds like rushing the process just creates more headaches down the road. Thanks for asking this question - it's clear from all the responses that this is a super common issue for freelancers, and now we all have a clear roadmap for handling it properly!

Welcome to the community! I'm also new here and found this thread while dealing with my own late 1099 nightmare. I received two 1099-MISC forms for some photography work about 10 days after filing, and I've been spiraling ever since! Reading through everyone's experiences has been such a huge relief - I had no idea this was so common among freelancers! Like many others mentioned, I was initially drawn to the "just include it next year" idea because amending seemed so complicated and scary. But after learning about the IRS matching system from @Daniela Rossi's explanation, I realize that would be a terrible mistake since they already have copies of everything. What really helped calm my anxiety was @Samantha Johnson sharing the actual penalty amounts from her experience. While I definitely don't want to pay extra fees, knowing it's not going to bankrupt me makes this whole situation feel much more manageable. I'm also going to wait for my refund before filing the amendment, just like my tax software recommended and everyone here has advised. The waiting is going to be torture, but it sounds like patience is key to avoiding complications. Thanks Sophie for asking this question and thanks to everyone who shared their experiences! This community has been a lifesaver for turning what felt like a complete disaster into something I can actually handle properly.

did u claim any credits? that usually makes it take way longer

Ugh the waiting is the worst part! I'm in a similar situation - verified identity 3/10 and still showing N/A on transcripts. From what I've read, it can take anywhere from 2-9 weeks after verification depending on what credits you claimed and if there are any other flags. The fact that your WMR changed to "received and being processed" is actually a good sign though - means they're actively working on it. Hang in there! 🤞

Just wanted to add that if you're using tax software like TurboTax or H&R Block, they usually have built-in help for IP PIN issues. Sometimes they can guide you through the retrieval process or even help you file without it in certain situations. Also, if you're married filing jointly and only one spouse has an IP PIN, you'll need to get one for both - learned that the hard way last year! 😅

If you're still having trouble getting your IP PIN, there's another option that might help - you can actually visit a local IRS Taxpayer Assistance Center in person. They can help verify your identity and get you set up with an IP PIN on the spot. You'll need to bring photo ID, Social Security card, and proof of address. It might be worth calling ahead to make an appointment though, since walk-ins can have really long wait times. The IRS website has a tool to find the nearest location to you. Sometimes the in-person route is actually faster than trying to get through on the phone!

Quick question - does anyone know if selling equipment/fixtures when closing a business is handled the same way as inventory? I'm about to close my soap making business and will be selling my equipment along with remaining inventory.

As someone who just went through closing my small consulting business last month, I wanted to add that timing can be really important here. Since you mentioned you're down to the wire with filing, make sure you don't miss any quarterly estimated tax payments that might be due if you had other income during the year. Also, when you report the $8,400 from scrapping on Schedule C, double-check that you're not forgetting any other business expenses from the year - things like storage costs for the inventory, shipping to the refiner, or any professional fees you paid for advice on closing the business. These can all be legitimate deductions that might help offset some of that inventory loss. One last thing - keep really good documentation of the scrapping transaction (receipts from the refiner, weights, metal content analysis, etc.) in case the IRS ever questions how you arrived at the $8,400 figure or the original $12,000 cost basis.

I went through something very similar last year - filed in February and didn't get my refund until July! It turned out the IRS had flagged my return for manual review because I claimed both the Child Tax Credit and education credits, which apparently triggers additional scrutiny. A few things that helped me get answers: 1. **Check your tax transcript** - Giovanni's advice about this is spot on. The codes will tell you way more than the "Where's My Refund" tool ever will. 2. **Don't wait for letters** - In my experience, IRS notices can take weeks to arrive or sometimes get lost in the mail. If your transcript shows a 971 code, call them directly rather than waiting. 3. **Document everything** - Keep records of every call attempt, reference numbers, and what representatives tell you. This becomes important if you need to escalate. 4. **Consider the Taxpayer Advocate Service** - If you've been waiting over 120 days (which you have), they can intervene. They're actually pretty effective at cutting through the bureaucracy. The frustrating reality is that certain combinations of credits and deductions just automatically trigger delays, even when everything is perfectly correct. It's not fair, but knowing this helps you prepare for next year. Hang in there - you will get your money!

I'm dealing with a similar situation and wanted to share what I've learned after months of research and calls. The IRS doesn't publish an official list of which credits trigger delays, but based on my experience and talking to multiple agents, here are the common culprits: **High-risk combinations that often cause delays:** - Child Tax Credit + Education Credits (AOTC/Lifetime Learning) - Earned Income Tax Credit (EITC) + Additional Child Tax Credit - Recovery Rebate Credit claims (missing stimulus payments) - First-time homebuyer credits - Premium Tax Credits with marketplace insurance **Single items that frequently trigger review:** - Large charitable deductions (especially non-cash) - Home office deductions for self-employed - Casualty loss claims - Prior year minimum tax credits The agents won't always tell you upfront what triggered the review - I had to specifically ask "What caused my return to be flagged?" and even then, some representatives were vague about it. One agent finally explained that their system uses algorithms to score returns for fraud risk, and certain combinations just automatically get higher scores. For future years, if you know you'll be claiming these credits, file as early as possible and consider using direct deposit to speed up the process once it's approved. The delays are frustrating but usually resolve eventually - just takes patience and persistence!