The IRS is such a joke fr like why they gotta make everything so complicated 🤡

I went through this exact same situation last year and it's definitely stressful! The 60-day review is pretty standard when the IRS flags certain returns for additional verification - could be anything from income matching to deduction verification. The good news is that most people get their refunds way before the 60-day mark, usually within 2-3 weeks in my experience. For your state refund question - California processes independently from federal, so you should still get your state refund on the normal timeline. I'm in CA too and got my state refund while my federal was still under review last year. The "don't contact us" message is real - calling won't help and you'll just sit on hold forever. Just keep checking the Where's My Refund tool every few days. Once it moves to "Refund Approved" you'll typically get your money within a week after that. Hang in there! 99% of the time these reviews are just routine verification and everything works out fine 👍

This discussion has been incredibly thorough and helpful! As someone who's been handling 1099 compliance for several years now, I can confirm that the advice given here is spot-on. The government entity exemption under Treasury Regulation 1.6049-4(c)(1)(ii) is one of the most straightforward exemptions in the tax code. I particularly appreciate the emphasis on documentation that several members mentioned. During our company's last IRS examination, the agent specifically asked about our process for identifying exempt vendors. Having that exempt vendor spreadsheet with regulation citations and sample invoices with government letterhead made the review go smoothly. The auditor spent maybe 5 minutes on our government vendor exemptions and moved on to other areas. For anyone still building their process, I'd recommend adding one more step to your documentation: include the official website URLs for your government vendors in your tracking spreadsheet. Most legitimate government entities have .gov domains, and having that URL documented provides additional verification of their government status. It's also helpful for training new staff members who might need to understand why certain vendors are excluded from 1099 reporting. The tools mentioned here (taxr.ai and Claimyr) sound really useful for newcomers who need extra support navigating these requirements. When I started out, I definitely could have used that kind of guidance! Great to see the community sharing practical solutions that actually work.

This has been such a comprehensive and helpful discussion! As a new business owner dealing with my first year of vendor payments, I was completely overwhelmed by 1099 requirements and had no idea that government entities were automatically exempt from reporting. The Treasury Regulation 1.6049-4(c)(1)(ii) reference that multiple people cited has been incredibly valuable - I looked it up and the language really is clear about covering all levels of government entities. We've paid our city clerk's office for business licenses, the state department of revenue for various fees, and county offices for permits throughout the year, and I was stressing about whether each one needed a 1099. I'm definitely implementing the documentation strategies shared here: creating an exempt vendor spreadsheet with regulation citations, keeping sample invoices with government letterhead, and setting up proper vendor types in QuickBooks. The suggestion about including .gov website URLs as additional verification is brilliant - it provides that extra layer of proof for audit protection. The tools mentioned (taxr.ai for vendor classification and Claimyr for IRS contact) sound really helpful too. It's great to know these resources exist for when I need additional guidance on edge cases or want to confirm exemptions directly with the IRS. Thanks to everyone who shared their real-world experience and practical solutions - this community knowledge has transformed what felt like an impossible compliance challenge into a manageable process with clear rules!

One more thing to know - your mortgage lender might have their own requirements about foreign gifts that go beyond what the IRS needs. When I got money from my aunt in Brazil, my lender wanted the funds to "season" in my account for 2 months before I could use them for the down payment. They also required a certified translation of the gift letter since it was originally written in Portuguese. Every lender is different, so make sure you talk to yours about any special requirements for foreign gifts specifically. Some are more strict than others.

Regarding the e-filing question - Form 3520 currently cannot be e-filed and must be mailed as a paper form to the IRS processing center. The address is typically the Ogden, Utah location, but double-check the current year's instructions since processing centers can change. This is one of the few major tax forms that hasn't moved to electronic filing yet, which is why many tax software programs don't include it. You'll likely need to download it directly from the IRS website and complete it manually or use specialized tax software that handles international reporting forms. Also worth noting - the form is due by the same date as your regular tax return (including extensions), but the penalties for late filing are calculated separately and can be quite severe, so don't assume that filing for an extension on your regular return automatically extends the 3520 deadline.

Did you receive any advance child tax credit payments in 2024? I had a similar issue where my 846 amount was about $900 less than I expected. Turns out that they had records showing I received advance payments that needed to be reconciled with my refund.

This exact same thing happened to me last year! My 846 code showed $2,847 but only $1,961 actually deposited. I was panicking for days thinking the IRS made some huge mistake. Turns out I had completely forgotten about an old debt from my college days that went into default. The Treasury Offset Program had taken $886 to pay it off. The notification letter explaining the offset arrived about a week AFTER my refund deposited, which is why I was so confused at first. My advice would be to call the Treasury Offset Program at 800-304-3107 first thing Monday morning. They can tell you immediately if any portion was offset for debt collection. It's usually much faster than trying to reach the IRS directly, and they have access to all the offset information in real time. Also double-check your transcript for any 971 notice codes that might indicate an adjustment was made to your return. Sometimes those are easy to miss when you're focused on the 846 code. Really hoping it's just a bank processing issue and the full amount shows up when it posts!

Does your dad's tax preparer use a professional tax software? If so, they can probably enter what they have now and then easily update it when the final docs come. That's what my accountant does. We have the appointment, she enters everything she has, then makes adjustments when final docs arrive. Saves time and lets me get in line before her schedule fills up.

As someone who's dealt with this exact situation multiple times, I'd strongly recommend against using the preliminary statement for filing. The "NOT FOR TAX RETURN" watermark is there for a very good reason - these documents often contain significant errors or incomplete information. Here's what I'd suggest for your dad's situation: Keep the Friday appointment, but have the accountant prepare everything EXCEPT the investment portion of the return. This way, your dad doesn't lose his spot during busy season, and the accountant can complete about 90% of the work. When the final brokerage statement arrives, it's usually just a quick update to finish the return. Most experienced tax preparers are very familiar with this scenario during tax season. The key is being upfront about having only preliminary documents so they don't accidentally submit the return early. Many will put a hold flag on the return until all final documents are received. If the final statement is significantly delayed, your dad can always file an extension later, but at least this way he keeps his appointment and gets most of the work done. Just make sure to ask the accountant about their policy on charges for the follow-up visit when final documents arrive.