Has anyone actually called the number on the 2802C letter? I got one last month, called the number, and a very helpful IRS agent explained exactly what triggered it and how to fix my W-4. Took maybe 20 minutes total. The letter is basically a warning that if you don't fix your withholding, they might send a "lock-in letter" later, which forces your employer to withhold at a specific (usually high) rate. But the 2802C itself is just an advisory notice with no penalties attached.

I had a very similar situation last year - got the 2802C letter right after setting up my first payment plan with the IRS. The timing wasn't coincidental at all. The IRS has automated systems that flag accounts when there's a pattern of underwithholding followed by payment arrangements. They'd rather have you withhold correctly throughout the year than collect large payments later. The blank fields on your letter are totally normal - these are system-generated notices based on patterns, not specific form reviews. Your suspicion about the new HR person could definitely be part of it too. I'd recommend having your husband download a fresh 2024 W-4 directly from irs.gov and fill it out completely from scratch. Don't rely on the HR person to have the current form or know how to process it correctly. One thing that helped me was using the IRS withholding calculator online to figure out exactly how much additional withholding we needed for the rest of the year. Since you're mid-year and have been underwithholding, you'll probably need to withhold a bit extra in the remaining paychecks to avoid owing again next April. The good news is this is just a warning - no penalties or immediate action required. Just get that W-4 updated within the next month or so and you should be fine.

Maya, I've been following this thread and wanted to add one more possibility that hasn't been mentioned yet. Sometimes CP171 notices are triggered by automatic matching programs where the IRS computer systems flag discrepancies between different databases. For example, if your nonprofit received any government grants or payments that were reported to the IRS via 1099-G forms, but those amounts weren't properly reflected or explained on the 990EZ, it can trigger an automated assessment. The IRS system assumes unreported income and generates a balance due notice. Also check if they received any Form 1099-MISC for things like awards, prizes, or certain types of payments that might need special handling on the 990EZ. Even small amounts can trigger these notices if not properly categorized. Given all the great suggestions in this thread (especially the Claimyr and taxr.ai options), you should be able to get this resolved fairly quickly once you identify the root cause. The key is having all your documentation ready when you do get through to someone at the IRS.

Maya, one additional resource that might help while you're working through this issue - the IRS has a specific webpage for exempt organizations that includes common CP171 triggers and resolution steps at irs.gov/charities-non-profits. They also have a dedicated email address for exempt organization questions where you can submit documentation and get written responses, which can be helpful when phone lines are jammed. Also, if this turns out to be a systemic processing error (which happens more often than you'd think), you might want to have your client register for an IRS online account at irs.gov/payments/your-online-account. Once verified, they can view their account transcripts online, which will show exactly what transactions and assessments the IRS has on file. This can help you identify discrepancies between what you filed and what the IRS processed. Keep us posted on what you find - these cases are always good learning experiences for everyone in the community!

Don't forget that you're only allowed ONE rollover per 12-month period for an HSA! This is a critical point that hasn't been mentioned yet. If you've already done a rollover in the past 12 months, you'll need to use this money for qualified medical expenses to avoid penalties. Also, the 60-day rollover window is strict - no extensions. Calendar those 60 days from when you received the check! Even one day late and you'll face taxes and potentially penalties.

I dealt with a similar situation when I left my job last year! One thing I wish I had known earlier is that you can actually contact Health Equity and request a direct trustee-to-trustee transfer instead of receiving a check. This avoids the 60-day rollover window entirely and doesn't count toward your one-rollover-per-year limit. If you've already received the check, you're still in good shape - just make sure to deposit it into a new HSA within 60 days. I ended up opening an HSA with Fidelity (no fees) and was able to deposit the check there without any issues. The key is making sure your new health plan is HSA-eligible before opening the account. Also, keep detailed records of the rollover process! I saved the original check stub, took photos of the deposit, and kept all correspondence. The IRS doesn't typically ask for this documentation, but it's good to have just in case. Good luck with your decision!

Congratulations on your upcoming wedding! I went through a very similar situation two years ago and wanted to share what I learned. The month-by-month eligibility calculation that others have mentioned is absolutely correct, but there's one additional detail that might help you feel even more confident. When you file Form 8962, there's actually a "safe harbor" provision for people whose income changes due to marriage. If your combined income for the year (including the pre-marriage months) is still under 400% of the Federal Poverty Level, your repayment amount is capped even if you technically received more credits than you qualified for. Given that your individual income was $38K and your fiancé's is $72K, your combined annual income of around $110K should still be well under the 400% FPL threshold for a married couple (which is about $140K for 2024). This means even in a worst-case scenario, any repayment would be limited. Also, definitely take advantage of that employer insurance option starting in December. Most employer plans have better coverage anyway, and it eliminates any uncertainty about marketplace calculations for the rest of the year. Don't let tax stress dampen your wedding joy - you're going to be just fine!

I'm dealing with a very similar situation - getting married in December and have been receiving Premium Tax Credits all year. Reading through everyone's responses has been incredibly helpful, especially learning about the month-by-month eligibility calculation. One thing I wanted to add that might help others: make sure to keep detailed records of when you actually get married versus when you update various systems. I've been told by a tax preparer that the IRS goes by your actual marriage date for the calculations, not when you updated your marketplace account or employer benefits. Also, for anyone in this situation, I found it helpful to request a projected 1095-A from the marketplace before the end of the year. This shows you exactly how much in Premium Tax Credits you've received so far and helps you estimate what the impact will be for those final months as a married couple. The advice about maximizing 401k contributions for the last couple months is brilliant - I hadn't thought of that strategy but it makes perfect sense for lowering your MAGI during the married filing period. Thanks to everyone who shared their experiences here. It's so reassuring to know this is a common situation with clear solutions rather than the tax disaster I was imagining!

Something nobody mentioned yet - make sure you're filing the correct year forms for your late 2023 return! The IRS won't accept current year forms for prior year filings. You need to use the actual 2023 tax forms, which you can download from the IRS website. And if you mail it, write "2023 Form 1040" in big letters at the top so it gets routed correctly.

Don't beat yourself up too much about this - it happens to more people than you'd think! I went through something similar a couple years ago and it all worked out fine in the end. One thing I'd add to the great advice already given: when you mail your 2023 return, consider including a cover letter explaining that this is a late filing for tax year 2023. It can help the IRS processors route it correctly and understand why it's being filed now. Also, make copies of everything before you send it - keep a complete record of what you submitted and when. For your 2024 return, once it's accepted (which it should be with the $0 AGI), you can actually check the status of both returns separately on the IRS "Where's My Refund" tool. Your 2024 refund will likely come much faster since it was e-filed, while the 2023 refund will take longer due to paper processing. The good news is that $4,180 total in refunds is definitely worth the hassle of sorting this out! And you're well within the 3-year window for claiming your 2023 refund, so no money is lost. Just be patient with the process - the IRS is slow but they'll get it sorted eventually.