Possible reasons for verification: - Income discrepancy - Identity verification needed - Missing documents - Suspicious activity flag Best thing to do is wait for their letter or use taxr.ai to get specific insights about your case. That tool saved me so much time figuring out what was wrong with my return last month.

I went through this exact same thing last month! Got the "We need more information" notice and was freaking out thinking I did something wrong. Turns out it was just routine identity verification - they sent me a letter asking me to confirm some basic info like previous addresses and loan amounts. The whole process took about 3 weeks from when I mailed back the verification form to getting my refund deposited. Don't stress too much about it! The fact that you got your state refund is actually a good sign that your return info is correct. The IRS is just being extra cautious with their fraud prevention this year. Make sure to respond promptly when you get their letter and you should be good to go. Hang in there! 🙂

has anyone had issues after filing w form 4852? my friend did this 2 years ago and said the irs sent him a letter asking for more info later and it was a whole thing.

I went through this exact same situation last year and it was incredibly stressful! One thing that really helped me was contacting the IRS directly to report my employer for not providing my W-2. You can call the IRS business phone line and file a complaint - they actually have procedures in place for this. When I called, they told me that employers are required to provide W-2s by January 31st, and if they don't, they can face penalties. The IRS agent I spoke with said that sometimes just having the IRS contact the employer directly gets results faster than anything else. Also, make sure when you're calculating your income for Form 4852 that you're being conservative rather than aggressive with the numbers. If you're unsure about something, it's better to slightly underestimate than overestimate. The IRS can work with you if your numbers are a bit low, but if they're too high it can create bigger problems. Keep all your documentation organized - pay stubs, any emails or texts with your employer, everything. You'll be glad you have it all in one place if the IRS has questions later.

Back in 2022, I had a similar experience and panicked unnecessarily. I've since learned that SBTG (Santa Barbara Tax Group) processes refunds for many tax preparation services. When I see questions like this now, I always recommend: 1) Check if you paid for tax preparation with your refund, as this routes your refund through SBTG, 2) Allow 1-2 business days after seeing the trace number, and 3) Contact your bank rather than the IRS if you're concerned, as they can see pending deposits. I appreciate everyone sharing their experiences here - it's helpful to know this is a common occurrence!

I went through this exact same thing last week! Saw the SBTG trace number on Tuesday morning but my account balance didn't change. I was getting worried until I called my bank (Wells Fargo) and they explained they could see the pending deposit in their system but it wouldn't be released until their next processing cycle. Sure enough, the funds appeared Wednesday evening. From what I've learned reading everyone's responses here, this seems to be completely normal when you use a tax prep service that takes fees from your refund. The money has to go through SBTG first instead of coming directly from the IRS, which adds that extra day or two. Definitely nerve-wracking when you're expecting it, but it sounds like seeing that trace number is actually great news - your refund is definitely on its way!

Did you claim any credits like EIC or CTC? That usually triggers more review

Same thing happened to me last year with the 570/971 combo! Turns out they just needed to verify my identity since I moved states. Got a CP05A notice in the mail about 10 days after the codes showed up asking me to verify online or call. Did the online verification and my refund released about 3 weeks later. The waiting is the worst part but hang in there! 🤞

I've been following this thread and wanted to add my perspective as someone who went through a very similar situation. The "wait and report after leaving" strategy mentioned by others is actually quite effective, but I'd also suggest documenting everything NOW while you're still there. Start keeping detailed records of: your work schedule, any emails showing you're required to be in the office, descriptions of your ongoing duties vs. project-based work, and any communications about your employment status. Take screenshots of job postings if they advertised your position differently than how you're classified. This documentation will be crucial whether you decide to approach your employer directly, file with the IRS, or report after finding a new job. I made the mistake of not documenting enough in my situation, and it made proving my case much harder later. Also, consider checking if your company has an HR department or if decisions are made by one person. Sometimes the person doing payroll doesn't fully understand classification rules, and bringing it to HR's attention (framed as a compliance question) might resolve it without drama. But definitely have that documentation ready first, just in case.

One thing I haven't seen mentioned here is checking if your company has any policies or employee handbook that might inadvertently contradict your contractor classification. Many employers slip up by including 1099 workers in employee-only policies or expecting them to follow the same rules as W-2 staff. Also, since you mentioned the other admin has been there 12 years, that's actually a huge red flag for the IRS. Long-term "contractor" relationships, especially for ongoing administrative work, are classic misclassification cases. The IRS specifically looks for situations where someone performs the same role for years as evidence of an employer-employee relationship rather than true independent contracting. You might want to research what happened to other companies in your industry who got caught doing this. Sometimes showing your employer news articles about similar businesses facing penalties can be more persuasive than citing IRS regulations directly. It makes the risk feel more real and immediate. And honestly, given that you're new and they've been misclassifying the other admin for over a decade, this company is probably sitting on a pretty significant tax liability if the IRS ever investigates. That might actually work in your favor if you do decide to have a direct conversation about reclassification.