Plot twist: what if the 'wrong' account is actually a secret IRS slush fund? 🕵️‍♂️💰

Had this exact same thing happen to me a few years back. In addition to calling the IRS, I'd also recommend filing Form 8888 if you need to split your refund between multiple accounts in the future - it helps prevent these kinds of mix-ups. Also, make sure your tax preparer has professional liability insurance that covers these types of errors. Some will actually reimburse you for any fees or penalties that result from their mistakes. Document everything and don't let them brush it off as "no big deal" - this is their responsibility to fix.

I completely understand your anxiety about this, especially after your 2021 experience! As someone who works with tax issues regularly, I can tell you that when the IRS sends a letter specifically stating "no action needed" with a 570 code, they're being very literal. The 570 is just a temporary hold while they complete their internal review - often triggered by filing status changes like your divorce situation. Filing an amendment when they've explicitly told you not to would actually contradict their internal process and could create significant delays. Given that you've already reviewed your return multiple times and found no errors, this really does sound like routine verification. I'd recommend following their instruction to wait it out. The hold should release within 2-4 weeks, and you'll see a 571 code when it does. Your 2021 situation was likely different - they probably didn't send a "no action needed" letter in that case.

I'm going through something very similar right now! Got my 570 code about 10 days ago with the same "no action needed" letter. Like you, I've been burned before by IRS issues and my first instinct was to DO SOMETHING, but reading through everyone's experiences here is really reassuring. It seems like the pattern is pretty consistent - when they explicitly say don't take action, they mean it, and amending actually makes things worse. The divorce angle definitely makes sense too since major life changes trigger their review systems. I'm going to resist the urge to "fix" something that apparently isn't broken and just wait for the 571 code to show up. Thanks for posting this question - it's exactly what I needed to see today!

Has anyone mentioned the potential criminal exposure here? If your dad has been committing tax fraud for years through his business and you're aware of it, you could potentially be considered an accessory after the fact if you don't report it and continue to benefit from it. I'm not trying to scare you unnecessarily, but my cousin faced serious consequences in a similar situation. The stakes are high - felony charges, significant fines, and even prison time are possible for serious tax fraud cases.

I understand how difficult this situation must be for you. The fact that you're asking these questions shows you want to do the right thing, which is commendable. One thing I'd add to the excellent advice already given: consider the timing of any actions you take. If your father is planning to retire in 2 years, that gives you some runway to address this thoughtfully rather than reactively. However, if he's actively committing fraud right now, waiting too long could make things worse. From a practical standpoint, I'd suggest documenting what you know (dates, general descriptions of conversations) in case you need this information later. Don't participate in any of the questionable activities, and be very careful about any financial gifts or transfers he might offer in the meantime. The estate planning attorney approach mentioned earlier is really smart - it gives your dad a face-saving way to transition to legitimate strategies while potentially stopping ongoing fraud. Many successful business owners genuinely don't realize there are perfectly legal ways to significantly reduce estate taxes through proper planning. You're in a tough spot, but addressing this now is much better than dealing with IRS enforcement actions later. Stay strong and prioritize protecting yourself and your family's long-term interests.

I'm confused about one thing... isn't there a way for you to get the child tax credit even without income? I thought there was something called the "additional child tax credit" that was refundable even if you don't owe taxes? But maybe that only applies if you have at least some income...

Just wanted to add some practical advice from someone who went through this exact situation. Since you and your boyfriend live together and he's supporting both you and your daughter, the smartest move financially is definitely for him to claim her on his taxes. But here's something important to consider for the future - you might want to think about getting married or at least getting his name on the birth certificate. While it doesn't matter for taxes right now, it could matter for other things like medical decisions, social security benefits if something happens to him, or custody issues if you ever split up. Also, even though you can't benefit from tax credits this year, you should still keep track of any expenses related to your daughter (medical bills, childcare if you ever use it, etc.) because these records might be helpful when you do start working again. And don't forget that you can start contributing to a Roth IRA once you have earned income - even small amounts can really add up over time for your future! The birth certificate thing is easy to fix in most states even if you're not married, so that might be worth looking into for peace of mind.

Did you file by paper or electronically? Makes a huge difference these days

This is a classic case of a "ghost return" - where you think you filed but the IRS has no record. The $0 balance isn't necessarily good news here since there's literally nothing to balance against. A few things to check immediately: 1) Log into your tax software account and verify the return was actually transmitted (not just prepared), 2) Check your bank account for any fee charges from the tax prep company - if they didn't charge you, they probably didn't file, 3) Look for email confirmations with specific IRS acceptance numbers. If you can't find proof of filing, you'll need to file ASAP. The good news is if you're owed a refund, there's usually no penalty for late filing, but if you owe money, penalties and interest start accruing from the original due date.