This exact thing happened to my neighbor last month! Turns out it was an old state unemployment overpayment from 2020 that she had actually appealed and won, but the state never updated their records with Treasury. Here's what I'd recommend based on what worked for her: 1. Call the Treasury Offset Program at 800-304-3107 first thing Monday morning (they open at 8 AM EST). Have your SSN ready and ask for the specific agency and debt amount. 2. Once you know which agency, call them immediately. Don't wait - some agencies have stricter timelines for disputes. 3. Ask for everything in writing. Request the original debt notice, payment history, and any correspondence they have on file. 4. If it's truly not your debt, file a formal dispute and provide proof of your identity (driver's license copy, etc.). 5. Consider contacting your local Taxpayer Advocate Service office if the agency isn't responsive - they can sometimes intervene faster than going through normal channels. My neighbor got her full refund ($2,847) released within 3 weeks once she proved the debt wasn't valid. The key was being persistent and documenting every single phone call. Good luck!

I went through this nightmare in 2023 and it was absolutely maddening! Here's what I learned the hard way: **First priority:** Get your tax transcript from the IRS website (irs.gov/individuals/get-transcript) - look for transaction codes starting with "766" or "898" which indicate offsets. This will show you the exact amount and date of the offset action. **Then follow this order:** 1. Call Treasury Offset at 800-304-3107 (best times are 8:00-8:30 AM EST on weekdays) 2. Get the agency name, debt type, and reference number 3. Call that agency's offset department immediately - don't go through general customer service 4. Request a "debt verification letter" and ask about their dispute process **Red flags to watch for:** - If they can't provide specific dates or amounts - If the debt is supposedly from years ago with no prior notice - If the agency seems confused about your case In my situation, it was a clerical error where my SSN got mixed up with someone who had the same last name. Took 6 weeks to resolve but I got every penny back plus interest. Document EVERYTHING - names, times, case numbers. The squeaky wheel gets the grease with federal agencies! What's the approximate amount they're claiming? That might give us clues about which agency is likely involved.

Just a heads up that tax filing for someone with dementia gets more complicated if they have income from multiple states. My father had rental properties in Florida while living in Pennsylvania with dementia. We had to file state returns for both states, and it got confusing quick. Make sure you understand which state considers your family member a resident for tax purposes. Some care facilities can affect residency status depending on whether they're considered permanent or temporary living arrangements.

I'm dealing with a very similar situation with my father who has vascular dementia. One thing I learned the hard way is to keep detailed records of every interaction with the IRS, including dates, times, and reference numbers. Also, don't forget about potential tax benefits you might be eligible for - medical expenses for dementia care can be significant deductions, and there are specific provisions for care facility costs. The IRS Publication 502 has details about what medical expenses qualify. I'd recommend getting everything set up sooner rather than later, as the process can take several weeks. The IRS moves slowly, and you want to have all the proper authorizations in place well before any deadlines. It's also worth noting that some banks and investment companies will require separate power of attorney documents beyond just the IRS forms. Hang in there - it's overwhelming at first but gets more manageable once you have the systems in place.

I'm a little confused about something - if the IRS took money for a 2023 tax issue (based on the 202312 part of your offset code), why would they take it from your 2024 refund without sending a notice first? That doesn't seem right.

Thanks for the update! That makes perfect sense - address changes can definitely cause issues with IRS notices. For future reference, you should also update your address directly with the IRS using Form 8822 (Change of Address), since they don't automatically get USPS forwarding updates. Since you now know there was an outstanding balance from the dividend income adjustment, you can request a payment plan if you disagree with the amount they offset, or file an amended return if you believe the dividend reporting was actually correct. You might also want to check if they applied interest and penalties to the original balance - sometimes the offset amount includes those fees, which can be disputed if the delay was due to their processing issues. The good news is that now you know exactly what happened, you can take the right steps to resolve it and prevent similar issues in the future.

Has anyone used any of those equity financing companies like SecFi or ESO? I'm considering one to cover my exercise costs but worried about what I'm giving up in the long run.

I went through something similar with my startup equity in 2022. One thing to consider that hasn't been mentioned yet is the potential wash sale rules if you're also trading in your company's stock through secondary markets or employee stock purchase plans. Also, given your company's current situation (70% drop in valuation), you might want to look at Section 1202 qualified small business stock (QSBS) benefits. If your company qualifies, you could potentially exclude up to $10 million in gains from federal taxes when you eventually sell. This is another reason why exercising now at the lower FMV could be beneficial - it starts your 5-year holding period clock for QSBS. The key is making sure you have enough liquidity to cover both the exercise costs ($36,400 for 28,000 shares) and the tax bill (roughly $1.36M in ordinary income assuming you're in a high tax bracket). Don't forget about state taxes too - they can add significantly to your bill depending on where you live. Have you considered doing a partial exercise strategy? Maybe exercise 25% of your vested shares now to start the capital gains clock, then reassess in 6-12 months based on how the company is performing?

Just want to add another perspective here - I'm a tax preparer and see this situation fairly often. The IRS is pretty strict about the "who paid" rule, but there are a few nuances worth mentioning: 1) If your parents paid the medical provider directly but you had already given them the money (even if it was earlier), YOU are considered to have paid and can deduct it. The key is having documentation showing the money flow. 2) For future reference, if family wants to help with medical bills, it's better tax-wise for them to give you the money first, then have YOU pay the provider. That way you maintain the deduction eligibility. 3) Don't forget that medical expenses include more than just the surgery - prescription drugs, medical equipment, travel costs to medical appointments, etc. Sometimes people miss these smaller items that can add up. Given that this happened last year and your parents paid directly, your best bet might be to see if they would benefit from itemizing their deductions instead of taking the standard. Even if they normally don't itemize, a large medical expense might push their total itemized deductions above the standard deduction threshold.

I'm dealing with a similar situation right now where my spouse paid for my dental work last year. Reading through all these responses has been super helpful! It sounds like the key takeaway is that the IRS really does focus on who physically made the payment, not who received the medical care. For anyone in this situation, it seems like the main options are: 1) having the person who paid consider itemizing their deductions if it makes sense for their tax situation, 2) properly documenting any legitimate loan arrangements going forward, or 3) in future cases, having the family member give you the money first so you can pay the provider directly. The reimbursement option that Yara mentioned is something I hadn't considered either. It's probably too late for most of us with 2024 expenses, but definitely good to keep in mind for this year's medical costs. Thanks to everyone who shared their experiences and especially to the tax preparer for the professional insights. Sometimes these family financial help situations create more complexity than we realize!