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Quick warning about buying tax credits - make sure you're getting them from a legitimate source! My buddy thought he got a great deal buying $25k worth of solar credits for $20k last year, but they turned out to be bogus. He's now dealing with an audit and penalties. The Inflation Reduction Act did make certain credits transferable, but there's a proper way to document the transfer. Legit credits will come with proper documentation including the seller's information, project details, and necessary forms. If someone's offering credits at a steep discount without proper paperwork, RUN.
That's terrifying! Any tips on how to verify the credits are legitimate before buying? Are there certain red flags to watch out for?
Absolutely - here are the red flags to watch for: First, legitimate credits typically sell at a 10-15% discount, not 30%+ which usually signals a scam. Second, verify the seller is an actual registered business with a track record in the industry (solar, wind, etc.). Always request full documentation before sending payment, including Form 3468 or relevant credit-specific forms, proof the project was completed and placed in service, and a proper written transfer agreement. Also, use a tax professional to verify everything before finalizing the purchase. Many scammers count on buyers not knowing what proper documentation looks like.
Something nobody mentioned yet - these credits are treated as income when you buy them at a discount! If you buy $40k in credits for $35k, the $5k difference is considered income you have to report. Also the IRS is definitely watching this area closely since the IRA made credits transferable. Make sure you keep PERFECT records of everything.
Are you 100% sure about that? I bought some credits last year and my accountant didn't mention anything about the discount being taxable income. Now I'm worried...
I'd definitely double-check with your accountant about this. The tax treatment of transferable credits purchased at a discount is still a bit of a gray area since the IRA just made this possible recently. Some interpretations suggest the discount could be treated as income, while others argue it's just a reduction in your tax credit basis. The IRS hasn't issued completely clear guidance on every scenario yet. Given the complexity and the fact that this is a newer area they're watching closely, I'd recommend getting a second opinion from a tax professional who specializes in energy credits before your next filing.
Just wanted to share that these scam letters are getting super sophisticated. My mom got one that had fake "IRS" watermarks and everything. What gave it away was they asked for payment via gift cards!! The real IRS will NEVER ask for gift cards, cryptocurrency, or wire transfers. They mainly use checks, direct debits from bank accounts, or their official payment system.
Omg the gift card thing is such a huge red flag! My brother actually fell for one of these and lost $2000 in Target gift cards before I found out and stopped him. These scammers are getting really good at making the letters look official. Another tip: the real IRS almost always sends letters through regular USPS mail, not through email, phone calls, or text messages.
This is unfortunately such a common scam right now. I work in financial services and we see customers coming in panicked about these fake collection letters almost weekly. The good news is that since you've been filing on time and getting refunds, there's virtually no chance this is legitimate. A few additional red flags to watch for: Real IRS notices always have your correct name and address, include your Social Security number (partially masked), and have specific notice numbers. They also never threaten immediate action in the first notice - there's always a series of escalating communications. Since you mentioned the letter has barcodes and looks official, that's exactly what scammers are doing now - they're creating very convincing fake documents. But legitimate IRS correspondence will have your tax account information that only they would know. Beyond calling the IRS directly, you can also visit a local IRS Taxpayer Assistance Center if you want to speak with someone in person. They can pull up your account immediately and confirm your status. Don't let these scammers steal your peace of mind!
After you send in the amendment, expect it to take 3-4 months minimum for processing. The IRS is really backed up with partnerships right now. If you need to prove to a lender that you've submitted an amendment before it's processed, make sure to keep detailed records of when you mailed it (certified mail with return receipt is best).
One thing to keep in mind - if your depreciation correction results in a significant change to the partners' K-1s (especially if it affects their basis calculations), you might want to send a cover letter with your amendment explaining the impact. This is particularly important if any partners have already filed their individual returns using the incorrect K-1 information, as they may need to amend their personal returns too. Also, double-check that your depreciation method is consistent across all affected assets. Sometimes when people catch one depreciation error, there are others lurking that follow the same incorrect pattern.
I filed Form 8379 in January 2024 and received my refund in exactly 9 weeks. What helped me was keeping detailed records of all correspondence and checking my transcript weekly rather than relying on Where's My Refund, which barely updates for injured spouse cases. One tip that might help - make sure you clearly separate your income, withholdings, and any estimated tax payments on the form. Any ambiguity seems to add processing time. Also, if you have direct deposit set up, that can shave off a few extra days compared to waiting for a paper check. The waiting is brutal, but in my experience, most people do get their refunds closer to the 8-10 week mark rather than the full 11 weeks.
This is really helpful advice! I'm new to this whole process and had no idea that the transcript would be more informative than Where's My Refund. I'll definitely start checking that weekly instead. Your point about clearly separating income and withholdings makes a lot of sense too - I tried to be as detailed as possible on my form, but I'm second-guessing myself now about whether I was clear enough. It's reassuring to hear that 8-10 weeks seems to be more realistic than the full 11 weeks. Thanks for sharing your experience!
I filed Form 8379 in February 2024 and got my refund in exactly 10 weeks and 3 days. What really helped me track progress was setting up an online IRS account to monitor my transcript - the codes tell you way more than Where's My Refund ever will. I noticed the TC 971 notice code appeared around week 7, which indicated they were actively reviewing my case. One thing I learned is that if you're in genuine financial hardship, you can contact the Taxpayer Advocate Service even after the 30-day window - they have some discretion for urgent situations. The key is documenting your hardship thoroughly. Also, double-check that your bank account info is correct for direct deposit, as any errors there can add weeks to the process even after approval. Hang in there - most people I know got theirs between weeks 8-10!
Vince Eh
check if ur bank info was entered correctly. my return was invisible until i realized i typed one number wrong in my routing number š¤¦āāļø
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Avery Davis
ā¢double checked and its all correct... but thanks for the suggestion!
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Owen Devar
That verification of non-filing letter appearing now is definitely suspicious timing. Someone may have requested verification of your 2020 status, which could be a red flag for identity theft. I'd recommend placing a fraud alert on your credit reports ASAP and maybe consider getting an IP PIN from the IRS for next year. The fact that your 2023 return is also missing from the system at the same time makes this even more concerning. Keep pushing with the IRS - don't let them brush this off as unrelated issues.
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