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Everyone's talking about the app, but has anyone mentioned that international filers often get flagged for additional review? I've seen this happen repeatedly with my clients. The verification is just step one - after that, you might be in the standard processing queue or you might be in a separate international review queue. Did they specifically tell you which verification path you completed?
I went through ID verification about 3 weeks ago and my IRS2GO app just updated yesterday! Like others mentioned, checking the transcript was definitely the way to go - it showed movement about 5 days before the app caught up. One thing I noticed is that the verification confirmation email I got was pretty generic and didn't give me much confidence it actually worked. But I kept checking my account transcript every few days and saw the codes change before anything showed up in the mobile app. For what it's worth, I completed the online ID.me process on a Tuesday morning and my transcript first showed processing updates the following Monday. The app took until this past Wednesday to reflect the same information. So roughly 2 weeks total from verification to seeing real movement in the app.
This timeline is really helpful, thank you! I'm in a similar situation - completed my ID.me verification about 10 days ago and have been obsessively checking both the app and transcript. Your experience gives me hope that I should see some movement soon. Did you get any specific codes on your transcript that indicated the verification was processed, or was it more general processing updates?
This is such a frustrating situation, but you're definitely not alone - I see property tax mix-ups like this more often than you'd think, especially when autopay is involved. The good news is that this is absolutely fixable, though it will require some persistence. One thing I haven't seen mentioned yet is to check if your mortgage company was involved in the original closing. If you had an escrow account for taxes, they should have notified the county about the ownership change. If they failed to do this properly, they might bear some responsibility for the ongoing payments and could help expedite the correction process. Also, when you contact the county offices, ask specifically about their "erroneous payment refund process" - most counties have a formal procedure for exactly this situation. Don't just explain the problem; ask for their standard form for property tax refunds due to ownership errors. This often moves things along faster than trying to explain the whole situation from scratch each time. The tax implications are definitely something to address proactively. Since you've been claiming deductions you weren't entitled to, filing amended returns voluntarily (before the IRS discovers the issue) usually results in much more favorable treatment. You'll likely face interest on any additional taxes owed, but penalties are often waived for voluntary corrections of honest mistakes. One last tip - if you run into bureaucratic roadblocks, ask to speak with a supervisor or property tax specialist rather than general customer service. They're usually much more familiar with resolving these types of ownership transfer issues.
This is really comprehensive advice! The point about checking with the mortgage company is especially important - I didn't even think about the escrow angle. If they were supposed to handle the tax notifications as part of the closing process, that could be a whole other avenue for getting this resolved more quickly. I'm also wondering about the current property owner in all this - have they been wondering why they never receive property tax bills? Or do some people just assume the county handles everything automatically after a sale? It seems like they should have noticed something was off when they never got billed for what's usually one of the biggest annual expenses of homeownership. The "erroneous payment refund process" tip is gold - I bet most people (like me) would just call and try to explain the whole confusing situation instead of asking for the specific form. Government offices probably deal with this exact scenario all the time, so having a standard procedure makes total sense.
This situation is more common than people realize, especially with autopay systems. I work in property tax administration and see cases like this regularly. Here's what you need to know about the process: First, stop the autopay immediately if you haven't already. Then contact your county's Property Tax Division (not just the general assessor's office) and ask for their "Erroneous Tax Payment Refund Application." Most counties have a specific form and process for exactly this situation. You'll need to provide: your closing statement/deed, proof of sale date, documentation of payments made, and current property records showing the error. The county should process refunds for payments made after the legal transfer date, typically going back 3-5 years depending on local statutes. For the tax return issue, you're right to be concerned. Since you claimed deductions for property taxes on a home you didn't own, you'll need to file amended returns (1040X) for those years. The good news is that voluntary corrections like this rarely result in penalties - usually just interest on any additional tax owed. One often-overlooked aspect: check if the current owner has also been claiming these property tax deductions. If both parties claimed the same taxes, the IRS's matching systems will eventually flag this discrepancy. Getting ahead of it by filing amendments now is much better than waiting for an audit. The whole process typically takes 3-6 months to fully resolve, but starting with the county's formal refund process is your best bet for getting the $10,500 back.
Thank you for this detailed breakdown from someone who actually works in property tax administration! This is incredibly helpful to have an insider's perspective on the process. I'm curious about one thing you mentioned - the IRS matching systems flagging double deductions. How long does it typically take for those systems to catch discrepancies like this? Is it something that would show up in the next tax season, or could it take years for them to notice that both the old and new owner claimed the same property taxes? Also, when you say "voluntary corrections rarely result in penalties," does that apply even if someone has been claiming invalid deductions for multiple years? I imagine the IRS might be more lenient for a single year mistake versus someone who's been doing this for 3+ years like OP's situation. The 3-6 month timeline is really useful to know - I bet most people expect these things to be resolved much faster and get frustrated when government offices take time to process everything properly.
I did some digging into this because it seemed so random (and frustrating!). Turns out the IRS uses something called the Return Review Program (RRP) which has different risk scoring models. π Your "verification path" is assigned based on your risk score and available verification channels in your area. Fun fact: they actually increased in-person verifications by 25% this tax season according to the National Taxpayer Advocate report. So if you got stuck with the in-person option, you're definitely not alone!
That's interesting about the 25% increase. Do you know if there's any way to request a different verification method if the assigned one is causing hardship? I live 2 hours from the nearest IRS office.
@Jessica Suarez Unfortunately, the IRS doesn t'typically allow you to switch verification methods once assigned. However, you might be able to request a hardship accommodation if the distance creates genuine difficulty. I d'recommend calling the Taxpayer Advocate Service at 1-877-777-4778 - they can sometimes help with situations like yours where the assigned method creates undue burden. Also worth checking if any mobile IRS offices will be in your area during tax season.
This is really eye-opening - I had no idea the verification method assignment wasn't random! I got the phone verification last month and was frustrated by the 2-hour wait time, but now I understand it's part of a risk-based system. What's interesting is that my brother filed a very similar return (we're both W-2 employees with standard deductions) but he got online verification while I got phone. Makes me wonder what specific factors in my return triggered the higher scrutiny level. Has anyone found patterns in what might cause the system to assign phone vs online verification for otherwise straightforward returns?
Has anyone used TurboTax to handle the reporting for this kind of transaction? I'm dealing with this exact situation but not sure if regular tax software can handle it properly or if I need to hire a CPA.
DON'T try to DIY this with TurboTax!! I did that last year thinking I could handle it, and missed reporting some forms related to the related-party transaction. Ended up with a notice from the IRS and had to pay penalties. This type of transaction requires proper reporting on multiple forms and schedules that typical consumer software doesn't guide you through well.
I'd strongly recommend getting professional help for this type of transaction. While the strategy can work, there are several critical considerations that need to be handled correctly: 1. **Business Purpose Documentation**: The IRS will scrutinize whether your S-Corp has legitimate business purposes beyond just holding your former residence. You'll need to document these purposes clearly. 2. **Fair Market Value**: You must sell at true FMV - get a professional appraisal. The IRS can challenge related-party transactions if the price seems artificial. 3. **Corporate Formalities**: Your S-Corp needs to operate as a real business entity - separate bank accounts, proper meetings/resolutions, market-rate rent if you continue living there, etc. 4. **Mortgage Complications**: As others mentioned, most residential mortgages have due-on-sale clauses. You'll likely need commercial financing for the S-Corp. 5. **State-Specific Issues**: Property tax reassessment, transfer taxes, and state-level reporting requirements vary significantly by location. The potential benefits can be substantial if you have significant appreciation, but the compliance requirements are complex. A qualified CPA experienced with real estate transactions and S-Corp structures is essential - don't try to navigate this alone with tax software.
This is exactly the kind of comprehensive advice I was hoping to find! As someone new to real estate investing, I'm curious about point #3 regarding corporate formalities. If I'm selling my primary residence to my S-Corp but then renting it out to actual tenants (not continuing to live there myself), would that make the business purpose documentation stronger? It seems like having legitimate rental income from day one would help establish that this isn't just a tax avoidance scheme. Also, when you mention "market-rate rent if you continue living there" - does that mean some people actually sell their home to their S-Corp and then rent it back from themselves? That seems like it would invite even more IRS scrutiny.
Alina Rosenthal
Have you tried checking the Tax Advocate Service? They can sometimes help if your refund is causing financial hardship. I felt so helpless waiting after my verification last year, but they were able to assist when I explained I needed the funds for emergency home repairs. You have to demonstrate actual financial hardship though, not just wanting your money faster. The process takes some paperwork but might be worth it if you're truly depending on those funds.
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Chloe Mitchell
I went through this exact same process about a month ago! After completing ID verification through ID.me, my refund took exactly 19 days to hit my account. The frustrating part was that my transcript barely updated during those 19 days - it just showed "return processed" but no deposit date until literally the day before it arrived. My advice is to check your transcript once a week max, not daily like I was doing (it was driving me crazy). The good news is that once verification is complete, you're basically in the final stretch. Just try not to make any concrete financial plans based on a specific date because the IRS can be unpredictable even when everything looks normal.
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Keisha Thompson
β’This is really reassuring to hear from someone who just went through it! I'm on day 6 since verification and already checking my transcript obsessively. Your advice about checking weekly instead of daily is probably smart for my sanity. Did your WMR tool show any updates during those 19 days, or was it stuck on "still processing" the whole time like mine is now?
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