Just finished dealing with one of these for my 2022 return! They questioned some charitable contributions. I sent donation receipts, bank statements showing the transfers, and a spreadsheet summarizing everything. Got confirmation last week that my return was accepted as filed. The whole process took about 10 weeks from first letter to resolution. Just be methodical and you'll be fine!

I just went through something similar! Got a "tax review" letter in January for my 2023 return - they were questioning my business expense deductions. Turned out to be a CP75 correspondence examination, which is basically their way of saying "prove this one thing and we'll leave you alone." The vague language is definitely frustrating, but here's what worked for me: I called the number on the letter (took 3 attempts over different days to get through), and the agent was actually helpful in explaining exactly what they needed. They were specifically reviewing my office supply and travel expenses because the amounts were higher than typical for my industry. Sent them organized receipts, bank statements, and a simple spreadsheet showing the business purpose for each expense. Got a "no change" letter about 7 weeks later. The whole thing was much less scary than it seemed initially - just their way of spot-checking specific items that their computers flagged. Your straightforward situation will probably resolve even faster than mine did!

Has your wife checked if you're accidentally claiming some deduction or credit that's a major audit trigger? For years I kept getting letters because I was mixing up the American Opportunity Credit and Lifetime Learning Credit for my kids' education expenses.

I've been through this exact same frustrating cycle! Got audited three years in a row before figuring out what was happening. In my case, it turned out to be a combination of two issues: my employer kept making small errors on my W-2 (like reporting $52,347 instead of $52,374) and I was inconsistently rounding numbers on my return. The IRS computer systems are incredibly sensitive to mismatches. Even if your actual tax liability is correct, any discrepancy between what you report and what third parties (employers, banks, etc.) report to the IRS can trigger verification requests. Here's what finally helped me: I started pulling my wage and income transcripts from the IRS website BEFORE filing my return to see exactly what information they already had on file. Then I made sure my return matched those numbers precisely - no rounding, no "close enough" estimates. Also worth noting - if you've moved recently or changed jobs, make sure all your addresses are consistent across all forms. The IRS uses address matching as one way to verify identity, and any inconsistencies can flag your return for additional review. Since making these changes, I haven't had a single audit or verification request in over four years. Sometimes it really is just about being more precise with the details rather than anything being fundamentally wrong with your return.

Has anyone tried to get around this by forming an S-Corp? My buddy claims he saves thousands by having his construction company pay his S-Corp instead of him directly, and then all his tools are business expenses.

The elimination of unreimbursed employee business expense deductions really hit trades workers hard. For your $2,800 in tools and $350 in uniforms, here are your realistic options: **Immediate solutions:** - Ask your employer about setting up an accountable plan for reimbursement. This makes the expenses tax-free to you and deductible for them. - Check if your state still allows these deductions on your state tax return (many do). - If you do any side HVAC work as a contractor, those tool expenses can be deducted against that 1099 income on Schedule C. **Documentation is key:** Keep all receipts regardless. Tax laws could change after 2025, and good records help if you transition to contractor work or start a side business. **Reality check:** For W-2 employees, there's unfortunately no federal workaround that doesn't involve actual changes to your employment structure or getting employer reimbursement. The accountable plan route is honestly your best bet - many employers are willing once they understand it benefits them too. Don't get caught up in complex entity structures unless you're genuinely ready to become an independent contractor with all the risks and responsibilities that entails.

I went through this exact situation last year when helping my elderly father with his tax issues. The processing time really depends on how you submitted it and whether there are any errors on the form. A few things that helped speed up my process: - I called the CAF unit at 855-798-8941 about 10 days after faxing and they were able to confirm it was received - Make sure you included the taxpayer's SSN on every page of the POA form - Double-check that you specified the exact tax matters and years in Section 3 Since you're approaching your December 15th deadline, I'd also suggest having your brother write a simple letter authorizing you to discuss his tax matters and bring it with you if you need to call the IRS. While not a substitute for the POA, it can sometimes help agents provide basic information while the formal POA is still processing. The health issues angle is important to mention when you call - the IRS does have provisions for hardship cases that might expedite processing.

I'm dealing with a similar POA processing delay right now, so this thread has been incredibly helpful! One thing I learned from my tax preparer that hasn't been mentioned yet is that you can actually request an "oral declaration" from the IRS in emergency situations. If your POA is still processing and you're facing that December 15th deadline, you can call the IRS with your brother present (even if he's in the hospital, a three-way call works). During the call, your brother can verbally authorize you to discuss his tax matters for that specific issue while the formal POA is still being processed. The IRS agent will note this in their system. This isn't a permanent solution, but it can buy you time to handle the immediate deadline while waiting for the full POA to process. Just make sure to have all your brother's identifying information ready (SSN, previous address, prior year AGI, etc.) to verify his identity during the call. The oral declaration won't give you the same broad powers as a processed POA, but it should be enough to discuss the specific tax matter that's causing your December deadline stress.

This is exactly the kind of situation that trips up so many first-time filers! The $1,800 difference between your Box 1 and Box 16 is almost certainly due to pre-tax deductions - most commonly 401(k) contributions, health insurance premiums, or HSA contributions. Here's what's happening: when you contribute to your 401(k), that money gets deducted from your gross pay BEFORE federal taxes are calculated, so it doesn't show up in Box 1 (federal wages). However, your state may not recognize these as pre-tax deductions, so the full amount of your earnings still appears in Box 16 (state wages). Since you mentioned nothing changed with your job but this is your first time seeing this difference, I'd bet you either increased your 401(k) contribution during open enrollment, started contributing to an HSA, or had some other benefit change that you might not have thought about as affecting your taxes. The good news is this is completely normal and actually beneficial - you're reducing your federal tax liability! Just enter the W-2 numbers exactly as they appear into TurboTax, and the software will handle all the calculations correctly. No need to panic or do any manual adjustments.

Just wanted to add another perspective here - I'm a tax preparer and see this exact situation multiple times every tax season! The $1,800 difference you're seeing between Box 1 and Box 16 is completely normal and nothing to worry about. Based on your description, the most likely cause is that you made changes to your pre-tax deductions during 2024 - even if they seem minor. Common culprits include: - Increased 401(k) contributions (even a 1-2% increase can create significant differences) - Started or increased HSA contributions - Changes to health/dental insurance premiums - New or increased flexible spending account contributions What happens is these deductions reduce your federal taxable wages (Box 1) but many states don't recognize all the same pre-tax deductions, so your state wages (Box 16) remain higher. You can verify this by checking your final 2024 paystub - look at your year-to-date pre-tax deductions and see if they roughly match the $1,800 difference. If they do, you're all set! Just enter your W-2 exactly as printed into TurboTax and let the software do its job. This is actually saving you money on federal taxes while building your retirement/healthcare savings!