Has anyone dealt with this situation where the escrow company issued the 1099-S incorrectly? My brother and I sold our parents' house but the escrow company put the entire amount under my SSN even though we split it 50/50. Will this cause problems with the IRS?

I went through something very similar when my sister and I inherited and sold our dad's rental property. One thing I'd add is to make sure you have the proper estate documentation showing the stepped-up basis value. We had to get a formal appraisal done as of the date of death because the estate didn't have one initially. Also, since you mentioned using TurboTax - when you get to the Schedule D section, there's a specific checkbox for "inherited property" that ensures the software treats it correctly for the stepped-up basis calculation. Make sure you check that box, otherwise it might try to use your parents' original purchase price as the basis, which would result in a much higher taxable gain. One last tip - if the house had any improvements made between the date of death and the sale date, you can add those to your basis as well. We had to do some minor repairs before selling and those costs reduced our taxable gain.

Does anyone know if this will affect the way the conversion is taxed? My understanding is that with in-plan Roth conversions, you're supposed to pay tax on the pre-tax portion that gets converted, but not on any after-tax contributions. Would the wrong code change how the IRS calculates the taxable amount?

I've dealt with this exact issue before with my solo 401(k). You're absolutely correct that code G should be used for in-plan Roth conversions, not code 2. Code 2 is specifically for early distributions from IRAs with exceptions. Here's what I learned from my experience: First, definitely contact your plan administrator ASAP to request a corrected 1099-R. Many can turn these around quickly since it's just a code correction. Second, if they can't get you a corrected form before your filing deadline, you can still file your return and include a brief statement explaining that the transaction was an in-plan Roth conversion within your 401(k), not an IRA distribution. The key thing is to make sure the dollar amounts in the other boxes are correct - Box 1 (gross distribution), Box 2a (taxable amount), and Box 5 (employee contributions). The wrong code is annoying but won't change your actual tax liability as long as those amounts are right. Keep documentation of your request to the plan administrator. I had to push mine pretty hard - they initially said "code 2 is fine" but eventually admitted they were using outdated guidance and issued the correction.

I'm dealing with the exact same situation and it's incredibly stressful! Filed in early January, got my 60-day letter in February, and now we're well past that deadline with zero updates on my transcript. The worst part is feeling completely in the dark about what's happening. Reading through everyone's experiences here has been both reassuring (I'm not alone) and concerning (this could drag on much longer). I'm particularly interested in the advice about calling early Monday morning and requesting a case trace - that sounds like the most concrete next step. For those who have successfully gotten through to the IRS, did you find that calling on specific days of the week made a difference? I've heard Tuesday through Thursday might be less busy than Mondays, but the 7 AM strategy seems to be the consistent advice regardless of the day. Also, has anyone had success with the "Where's My Refund" tool suddenly updating after weeks of no change, or is calling really the only way to get movement on these delayed returns? I check it obsessively but it's been stuck on "still processing" since February. The financial stress is real - I had planned expenses around receiving this refund by now. Thanks to everyone sharing their experiences and advice. It really helps to know we're not dealing with this alone!

I'm so sorry you're going through this - the combination of medical bills and an indefinitely delayed refund is incredibly stressful. I went through something very similar last year and wanted to share what finally worked for me. After my 60-day period expired with no updates, I called the IRS using the early morning strategy others mentioned (7 AM sharp). The key thing I learned is to specifically ask for a "manual refund trace" rather than just asking about your refund status. This is different from a regular case trace and actually requires them to physically locate your return in their system and provide you with the specific reason for the delay. When I did this, I discovered my return had been flagged because I had moved between tax years and they needed to verify my address change, even though I had filed a change of address form months earlier. The agent was able to clear this immediately once she saw the documentation in their system. The whole process took about 2.5 hours on hold, but once connected, the issue was resolved in 15 minutes and I had my refund deposited within 6 business days. For your medical bills situation, definitely reach out to the billing departments and explain you're waiting on a delayed federal tax refund. Most healthcare providers are familiar with IRS delays this year and many will put your account on hold or set up a payment plan without penalty if you can provide them with documentation of your pending refund (like a copy of your 60-day letter). Don't lose hope - your money is there, it's just stuck in bureaucratic quicksand. The squeaky wheel really does get the grease with the IRS.

I'm dealing with the same anxiety about ERC processing times! Filed my 941X in January 2024 for around $67k and the uncertainty is killing me. What's really frustrating is that there's no reliable way to track the status. I've tried the "Where's My Amended Return" tool online but it doesn't work for business returns, only individual 1040X forms. The IRS phone system is essentially useless - I've spent entire mornings on hold just to get disconnected. From reading everyone's experiences here, it sounds like the 8-12 month timeline is pretty accurate. I'm trying to plan my cash flow accordingly and not count on seeing that money until at least September 2024, maybe later. One thing I learned from my accountant is that the IRS has been cracking down hard on fraudulent ERC claims, which is why legitimate claims are getting caught up in the delays. They're being extra cautious with review, especially for larger amounts. Thanks for starting this thread - it's helpful to see real experiences instead of just speculation!

I've been following this thread closely since I'm in the same boat - filed my 941X in October 2023 for about $78k and still waiting. Just wanted to share a few things I've learned that might help others: First, I called my local IRS Taxpayer Advocate Service office after waiting 10 months with no word. They can't speed up processing but they were able to confirm my forms were received and in the queue. The number is different for each area but you can find yours on the IRS website. Second, I've been tracking every piece of correspondence in a simple spreadsheet - dates, amounts, who I spoke with, reference numbers, etc. This has been super helpful when following up. The most important thing I learned is that even though it's taking forever, the vast majority of legitimate claims are eventually getting paid. My accountant said out of 50+ ERC clients he's filed for, only 2 have been denied and those were borderline cases anyway. The waiting absolutely sucks when you're counting on that money, but try to stay patient. From what I'm seeing in this thread, most people are getting their refunds around the 8-10 month mark, which gives me hope I should see mine soon. Thanks everyone for sharing your experiences - it really helps to know we're not alone in this process!

Has anyone tried using the IRS online account portal to respond to notices? I was able to upload documents directly for an audit last year without dealing with mail or fax. Not sure if it works for all types of notices though.

I just went through this exact situation last month with a 1098-T response! I ended up choosing FAX and I'm glad I did. Here's what worked for me: I went to a UPS Store (they have reliable fax machines) and made sure to get a transmission confirmation report that shows the date, time, and confirmation that all pages went through successfully. The key thing I learned is to call the fax number first to make sure it's working - some IRS fax lines go down periodically for maintenance. One tip that saved me: I included a cover sheet with my SSN, notice number, and contact phone number on every single page of the document, not just the cover sheet. This way if pages get separated in their system, each page can still be matched to my case. The whole process took about 15 minutes at UPS Store (cost me $2 per page), and I got confirmation from the IRS three weeks later that they received it and processed my amended return. My refund was issued about 6 weeks after that. Since you're expecting a $4K refund, I'd definitely recommend the FAX route for speed, but make absolutely sure you keep that transmission confirmation as your proof of timely filing!