I'm going through almost the exact same situation and wanted to share what I've learned after finally getting some answers from the IRS. Like you, I had multiple jobs across states, filed an amended return due to a corrected W-2, and have been waiting 7+ months. Last week I finally got through using the 8am calling strategy (took 3 attempts but it works!) and spoke with an agent who explained what's really happening. When you file an amended return that corrects W-2 information, the IRS has to manually verify the changes with your employer's records in their system. This process can take 4-6 months alone, and that's on top of any initial review time. The agent told me they're severely backlogged in their "wage verification" department specifically. What was really helpful was that she gave me a direct phone number (855-202-4346) for amended return inquiries and a case reference number I can use for future calls. She also confirmed that my refund will include interest calculated from 45 days after my original filing date - in my case, that's adding up to about $400 extra. The most encouraging thing she told me was that returns like ours (multiple jobs + amended W-2s) are actually progressing through the system, just very slowly. She estimated I should see movement in the next 4-6 weeks based on current processing times. I know it's incredibly frustrating, but hang in there. The combination of your situation (multiple states/jobs + stock transactions + amended return) created the perfect storm for delays, but you're definitely not forgotten in the system.

I'm really sorry you're going through this - 6+ months is an incredibly long time to wait for your refund, especially when it's such a significant amount. Your situation resonates with me because I went through something very similar last year. The combination of factors in your case (multiple states, multiple jobs, stock transactions, plus the amended return with corrected W-2) unfortunately creates what the IRS considers a "complex return" that requires manual review. When you filed that amended return in May, it essentially reset the processing timeline because they have to re-verify everything against employer records. I'd strongly recommend trying the congressional representative route at this point. After 6+ months, you're well beyond reasonable processing times, and congressional offices have direct liaison contacts at the IRS who can often get answers when normal channels fail. You just need to fill out a privacy release form on your representative's website. Also, keep in mind that you'll receive interest on your delayed refund calculated from 45 days after your filing date. At the current rate of around 7% annually compounded daily, you're looking at a decent amount of additional compensation by the time your refund comes through. The IRS letters you received are actually a good sign - they indicate normal processing for a complex amended return, even though "normal" feels anything but normal when you're waiting this long. Your return hasn't been forgotten; it's just stuck in a very slow-moving manual verification process. Hang in there - based on everything I've seen, people in your exact situation do eventually get their refunds, it just takes much longer than it should.

Don't forget you can offset those winnings with losses, but only if you have proof! I learned this the hard way. Keep all your ATM receipts at casinos, player's card statements, even hotel bills that show you were there. If you're audited without proof, you're screwed.

Everyone here is giving tax advice but no one mentioned the most important thing - if you won exactly $1200 they probably didn't withhold any federal taxes! The casino is required to give you a W-2G but withholding is only mandatory on slots if you win over $5,000. Make sure you set aside money for taxes so you're not surprised at tax time!

Don't forget to request an abatement of any penalties they've proposed in the CP2000! Since this was your first time dealing with ISOs and you're not trying to hide income (it was on your W-2), you qualify for "reasonable cause" relief from penalties. Include a brief statement saying something like: "I request abatement of any penalties as I made an unintentional error in not reporting the 1099-B. The income was properly reported on my W-2 as shown in the attached documentation, demonstrating there was no intent to underreport income." I was in almost the identical situation in 2020 and not only did they remove the proposed tax adjustment, they also waived all penalties when I explained it was my first time dealing with equity compensation and I didn't understand the dual reporting requirement.

This is a stressful situation but definitely manageable! I went through something very similar with my ISO exercise in 2020. The key thing to understand is that the IRS computer system flagged this because it saw income reported on your 1099-B but couldn't automatically match it to the corresponding W-2 income. When you respond to the CP2000, you'll want to clearly show the connection between your W-2 and 1099-B. Look for Box 14 on your W-2 - many employers specifically note ISO income there, or it might be included in your regular wages in Box 1. Your employer should also have provided an equity statement showing the details of your ISO transaction. A few critical points for your response: 1. Send copies of both your W-2 and 1099-B 2. Include any equity compensation statements from your employer 3. Write a clear explanation showing how the exercise spread was already taxed as ordinary income 4. Calculate any small capital gain/loss from the actual sale price vs. fair market value at exercise 5. Request penalty abatement since this was an unintentional reporting error Don't panic about the deadline - you have options. If you're running short on time, you can call the IRS to request an extension while you gather documentation. The CP2000 is a proposal, not a final assessment, so you have the right to dispute it with proper documentation.

Lots of other countries already do what you're suggesting! In the UK they have a system called PAYE (Pay As You Earn) where taxes are automatically calculated and withheld for most employees. Sweden, Denmark, and Spain all send pre-filled tax returns to citizens - you just verify the information and submit. The US system is deliberately kept complex and manual. The technology for automated taxes has existed for decades.

This is exactly why I've been pushing for return-free filing for years! As a tax professional, I see how unnecessarily complicated we've made something that could be simple for most Americans. The IRS already has the capability to pre-populate returns - they actually tested a pilot program called "Ready Return" in California back in 2006 that worked great. Participants loved it and it had a 99% accuracy rate. But it was killed due to industry pressure. For about 70% of taxpayers who take the standard deduction and have straightforward income, the math is already done. The IRS knows your wages, interest, and most other income sources. They could easily send you a pre-filled return to review and approve, just like other countries do. The real barrier isn't technical - it's political. We need to demand that our representatives prioritize taxpayer convenience over corporate profits from the tax prep industry.

If she's getting $9,700 back, she should really update her W-4 with her employer. She's having waaaay too much withheld from each paycheck! That's over $800 a month she could be getting in her regular pay instead of waiting for a refund. I used to do the same thing until I realized I could be using that money throughout the year for my bills or putting it into investments instead of giving the government an interest-free loan.

As someone who works in tax preparation, I can confirm that a $9,700 refund for a single parent with two children making $62,000 is definitely possible and likely legitimate. Here's how it could break down: - Child Tax Credit: $4,000 ($2,000 per child) - Earned Income Tax Credit: Could be $1,000-2,000 depending on exact income and ages of children - American Opportunity Tax Credit: Up to $2,500 if she or children are in college - Child and Dependent Care Credit: Up to $2,100 for childcare expenses - Overwithholding from paychecks throughout the year The key thing is that many of these credits are refundable, meaning even if she owed $0 in taxes, she'd still get money back. That's what creates these large refunds for working families with children. If she's concerned about accuracy, she could always get a second opinion from another tax professional or use one of those verification services others have mentioned. But from what you've described, this doesn't sound like a red flag to me - it sounds like she's getting the credits she's entitled to as a working parent.