I'm also going through this exact situation right now and it's been such a stressful ordeal! I received my CP05A letter about 3 weeks ago after filing in February and dealing with multiple 60-day review letters. My transcript shows the same 570 and 971 codes that everyone else is mentioning. What's been most frustrating for me is that I've called multiple times and gotten completely different explanations each time - one agent said it was income verification, another said random audit selection, and a third couldn't even tell me what was being reviewed. The inconsistency is maddening when you're trying to figure out what documentation to send. I'm a single parent running a small home-based business, so this delayed refund is really impacting my ability to cover childcare costs and business expenses. I was counting on that money to get caught up on some bills and invest in my business growth. Reading all of your strategies here has been incredibly helpful though! I had no idea I could request case notes to be read to me or ask for a Tax Examining Technician specifically. I'm definitely going to try calling early tomorrow morning and use some of these approaches. The spreadsheet idea matching receipts to specific expense lines is genius - I just sent everything in a big envelope hoping they'd figure it out. Thank you all for sharing your experiences and making me feel less alone in this process. It's reassuring to know that most cases do eventually get resolved, even though the waiting is absolutely brutal. I'll keep you all updated on my progress!

I'm currently dealing with a CP05A letter myself and this thread has been incredibly valuable! I received mine about 6 weeks ago after filing in January and going through the usual identity verification process. Like so many of you, my transcript shows the 570 code with multiple 971 codes. What struck me most reading everyone's experiences is how the lack of clear communication from the IRS creates so much additional stress. I've called three times and gotten three different explanations - business expense verification, income matching, and "routine review." It's exhausting not knowing what they actually want. I'm implementing several strategies I've learned here: I started keeping detailed logs of every phone call (wish I'd done this from the beginning!), and I'm planning to call early tomorrow morning specifically requesting to speak with a Tax Examining Technician and asking for my case notes to be read aloud. The tip about organizing documentation with a detailed spreadsheet is brilliant - I initially just sent everything in one package. For those asking about timing, I've had slightly better luck calling between 8-9 AM on weekdays. The agents seem less rushed and more willing to dig into specifics. The financial stress is real for all of us, but reading everyone's experiences gives me hope that persistence eventually pays off. Thank you all for sharing your strategies and making this feel less isolating!

If you're really in a hurry and the amount is not too large, you can also pay with a credit card through one of the IRS payment processors. There's a fee (around 2%) but it posts immediately. I did this last year when I was up against the deadline and didn't want to mess with wire transfers.

I've been dealing with IRS payments for my small business for years and wanted to share what I've learned. The wire transfer process is definitely confusing at first, but once you understand the format it becomes routine. For the "account number" field, you're essentially creating a coded identifier that tells the IRS exactly what tax liability you're paying. The format varies depending on whether it's personal income tax, business tax, estimated payments, etc. The IRS worksheet should have the specific format for your situation, but it's usually your tax ID (SSN or EIN) followed by the tax form code and period. One thing I always recommend is calling your bank first to make sure they're familiar with federal tax wire transfers. Some smaller banks or credit unions might not process these regularly and could give you incorrect information. The larger banks usually have dedicated tax payment departments that know exactly what to do. Also, make sure you get a confirmation number from both your bank and keep records of the wire transfer. The IRS can take a few days to post the payment even though it's "same day," so having that documentation is crucial if any issues come up later.

Just a heads up that the mortgage insurance premium deduction is one of those "below-the-line" itemized deductions, so you only benefit if your total itemized deductions exceed the standard deduction. For 2025, the standard deduction is projected to be $13,850 for single filers and $27,700 for married filing jointly. For many people with smaller mortgages or who live in lower-cost areas, the standard deduction might still be better even with the PMI deduction added back. Do the math before getting too excited!

This is fantastic news! I've been following the legislative updates closely and was really hoping this would get restored. I'm in a similar situation - bought my first home 18 months ago with 8% down and have been paying about $180/month in PMI. One thing I'd add for anyone reading this - make sure you keep good records of all your PMI payments throughout the year. Your mortgage servicer should send you a Form 1098 that breaks down your mortgage interest and PMI payments, but it's worth double-checking those numbers against your monthly statements. I learned the hard way last year that sometimes the 1098 doesn't capture mid-year changes correctly. Also, if you're close to the income limits that others mentioned, remember that certain pre-tax contributions (like 401k, HSA, etc.) can help lower your AGI and potentially keep you eligible for this deduction. Every little bit helps when you're trying to maximize your tax savings as a new homeowner!

I'm a former IRS agent (not giving professional advice, just perspective). The arrangement you're describing would likely be flagged under FBAR (Foreign Bank Account Reporting) and FATCA requirements. Non-US citizens who are US residents for tax purposes must report foreign accounts that exceed $10,000. The IRS specifically looks for arrangements where US residents use foreign entities to avoid reporting requirements. The penalties for failing to disclose such arrangements can be severe - up to $100,000 or 50% of account balances per violation.

As someone who went through a similar situation when I moved to the US for work, I can share what I learned the hard way. The key insight that saved me was understanding that tax residency and citizenship are completely separate concepts in US tax law. When I first arrived on my L-1 visa, I made the mistake of thinking I only needed to report US income. After consulting with a tax attorney who specializes in expat situations, I discovered that once you meet the substantial presence test (which happens quickly when you're here on a work visa), you're taxed as a US resident on worldwide income. Here's what I'd strongly recommend: 1. Get professional tax advice from a CPA who specializes in international tax and crypto - this isn't a DIY situation 2. Use proper crypto tax software to handle your transaction volume (the recommendations above for taxr.ai seem solid) 3. Consider whether restructuring your trading as a US business entity might provide better compliance and potential deductions 4. Look into tax treaties between the US and Canada that might help avoid double taxation The offshore corporation route you're considering is extremely risky. Even if structured "correctly," the compliance burden (FBAR, Form 8938, potentially Form 5471) is massive, and the penalties for getting it wrong are severe. The IRS has gotten very sophisticated at tracking crypto transactions across international boundaries. Your trading volume actually makes compliance easier in some ways - with proper software, bulk processing is more efficient than trying to handle smaller volumes manually. Focus on legitimate tax efficiency strategies rather than avoidance schemes that could jeopardize your visa status and future immigration prospects.

I've had 3 partnerships with negative basis issues. Your basis includes your share of partnership liabilities, so check if: 1) Your share of liabilities decreased significantly 2) You took distributions when profits were minimal 3) The partnership claimed large depreciation deductions

This is exactly why partnership taxation can be so tricky for investors who aren't familiar with the rules. Your situation is unfortunately quite common, especially in real estate partnerships or businesses that distribute cash from refinancing. The key thing to understand is that your $160,000 capital account and your tax basis are completely different numbers. Your capital account shows your economic rights in the partnership, but your tax basis determines the tax consequences when you exit. If you received distributions over the years (especially from that refinancing you mentioned), those distributions reduced your tax basis even if the partnership was showing losses on paper. Once your basis hit zero, any additional distributions created negative basis. When you sell your partnership interest with negative basis, that negative amount becomes taxable gain - even though economically you're walking away with less than you invested. It's essentially the IRS collecting tax on those prior distributions that exceeded your basis. The good news is that if you can reconstruct your basis properly, you might find some adjustments that could reduce the gain. Make sure your CPA has accounted for all debt allocations, any Section 754 elections, and properly applied loss limitations from prior years.