This is a really concerning situation, and I'm glad you're questioning it now. As others have mentioned, while legitimate depreciation add-backs are a real thing in mortgage underwriting, what your loan officer suggested crosses into fraud territory. The key issue is that you can ONLY claim business mileage for miles you actually drove for legitimate business purposes. If you amended your return to include fictional miles just to boost your mortgage-qualifying income, that's tax fraud regardless of how mortgage lenders might treat the depreciation component. I'd strongly recommend: 1. Consult with a CPA immediately about your amended return 2. If you claimed miles you didn't actually drive, file another amendment to correct it 3. Consider finding a new mortgage lender - one that doesn't suggest illegal tactics There are legitimate ways to present self-employment income favorably to lenders without breaking tax laws. A good mortgage broker should know the difference between proper income analysis and fraud. Your current loan officer has put both of you at risk with this advice. Better to delay your home purchase than face potential IRS penalties, mortgage fraud charges, or having to explain falsified tax documents later. The housing market will still be there when you get your finances properly sorted.

As someone who went through the self-employment mortgage process recently, I want to echo what others have said - this is definitely concerning territory. The legitimate practice of adding back depreciation exists, but your loan officer crossed a major line by telling you to amend your taxes with potentially fictitious business miles. Here's what I learned during my own process: legitimate lenders who work with self-employed borrowers will add back non-cash expenses like depreciation, but they do this based on what's ALREADY on your tax returns. They don't ask you to modify your returns to create these deductions. A few suggestions from my experience: 1. Find a mortgage broker who specializes in self-employed borrowers and ask them upfront about their income calculation methods 2. Get a consultation with a tax professional about your amended return situation 3. Look into asset-based lending or bank statement loan programs if your tax returns don't show enough income The red flags to watch for: any loan officer who suggests modifying tax documents, making deposits to inflate bank statements, or claiming expenses you didn't actually incur. Good mortgage professionals work with what you legitimately have, not what you can manufacture. It might delay your home purchase, but fixing this properly now will save you from much bigger problems down the road. The IRS doesn't mess around with amended returns that can't be substantiated.

I went through a very similar situation a few years ago and can share some hard-learned lessons. First, you're absolutely right to be concerned - installment agreements can become endless cycles if the payment amount doesn't exceed the monthly interest and penalty charges. Here's what I wish I had known earlier: Request a detailed breakdown of how your monthly payment is being applied. The IRS should be able to tell you exactly how much of each payment goes to principal vs. interest/penalties. If less than 50% is going to principal, you're essentially treading water. A few practical steps that helped me: 1. Calculate the minimum payment needed to make actual progress (usually 20-30% higher than what covers just interest) 2. Request penalty abatement for any months you can qualify for - this can significantly reduce the total debt 3. Consider making extra payments specifically designated for principal reduction 4. If your financial situation has changed since starting the agreement, request a review The 10-year collection statute mentioned by others is real, but don't count on it as your primary strategy. Focus on either increasing payments to attack the principal or exploring other options like an Offer in Compromise. With a baby coming, document everything about your changing financial situation - the IRS does consider family circumstances in hardship determinations. Good luck!

I'm dealing with a similar situation and wanted to share what I've learned from talking to several tax professionals. The key thing that's often overlooked is that you can request what's called a "Financial Hardship Review" even if you're current on your installment agreement payments. With a baby on the way, your situation is actually perfect timing for this. The IRS recognizes that major life changes like new dependents significantly impact your ability to pay. You can submit Form 433-A (Collection Information Statement) along with documentation of your expected expenses for the baby - things like projected medical costs, childcare if both parents work, increased food and clothing expenses, etc. What's particularly relevant to your situation is that the IRS may agree to suspend collection activities entirely under "Currently Not Collectible" status if your necessary living expenses exceed your income. During this time, penalties and interest continue to accrue, but you're not required to make payments. More importantly, the 10-year collection statute continues to run. I'd also suggest requesting a complete account transcript to see exactly when each tax year was assessed. If any of the debt is close to the 10-year mark, it might make more sense to focus on financial hardship options rather than trying to pay down debt that could expire soon anyway. The timing with your growing family could actually work strongly in your favor - just make sure to document everything properly when you apply.

Code 424 is definitely one of the more stressful ones to see! I got mine about 8 weeks ago and just had it resolve last week, so there's definitely light at the end of the tunnel. From what I've experienced and read, it usually means they're doing income matching or verifying credits you claimed. The timeframe really varies - some people get through it in 45 days, others take 4+ months. One thing that helped me was setting up informed delivery with USPS so I'd know immediately if the IRS sent any letters requesting documents. Try to stay patient (easier said than done, I know!) and remember that most 424 reviews end with your refund being released without any issues. You've got this! 💪

I totally understand the anxiety! I got code 424 about 4 months ago and it was such a rollercoaster of emotions. Mine ended up being related to the Earned Income Tax Credit verification - they wanted to make sure my income and dependents matched up properly. The whole process took about 14 weeks but I did eventually get my full refund with interest. The hardest part was definitely the uncertainty and not knowing what specific issue they were reviewing. I found it helpful to keep a little journal of when I checked my transcript and any changes I noticed - it helped me feel like I had some control over the situation. Also seconding what others said about having your W-2s, 1099s, and any dependent documentation ready to go just in case. Hang in there - I know the waiting is brutal but you'll get through this! 🌟

Protip: use an account transcript analyzer like taxr.ai instead of trying to figure it out yourself. Shows exactly when YOUR transcript will update based on YOUR specific situation. Changed the game for me fr

Same here! The waiting is killing me 😩 I've been refreshing like crazy too. From what I've learned here, it sounds like most updates happen Friday mornings around 3-6am EST, but it really depends on your specific cycle code. Might be worth checking what yours is so you know when to actually expect updates instead of checking constantly!

Just to clarify something important that others haven't mentioned - cycle 05 means your account is processed weekly, not daily. So your transcript only updates once per week (typically Thursday night/Friday morning), while daily cycle filers can see updates any day. This is why the lag between transcript and WMR might seem longer for weekly filers - you're essentially waiting for two different weekly processes to align. It's not that the WMR delay is longer, it's that your transcript only updates weekly to begin with! 😆

Thank you for asking this question! I'm in the exact same situation - cycle 05 and avoiding ID.me. Based on all the responses here, it looks like I can expect WMR to update 1-4 days after my transcript changes, with Thursday night transcript updates typically leading to Friday-Monday WMR updates. The consistency in everyone's experiences is really helpful. I'm going to stop obsessively checking WMR multiple times a day and just check once daily starting Friday mornings. It's frustrating that we can't access our own tax information without giving up our privacy, but at least now I have realistic expectations for the timing!