Just wanted to share a warning - I had tax debt from 2006-2008 that should have reached the CSED by 2018-2020, but I found out the IRS had sued me in federal court for the tax debt back in 2016 (I never received the notices because I moved several times). Once they get a judgment, the CSED no longer applies and they can collect for 20+ years!! If your debt is substantial (mine was about $48,000), they might have already taken this step. You should check court records in your jurisdiction to make sure they haven't filed a suit against you. This completely changes the CSED situation.

Just wanted to add another important point that hasn't been covered yet - if you're dealing with CSED issues, make sure you understand the difference between the Collection Statute Expiration Date and the Assessment Statute Expiration Date (ASED). The ASED is typically 3 years from when you filed your return (or should have filed), and it determines how long the IRS has to assess additional taxes. The CSED is the 10-year period for collection that everyone's been discussing. These are completely separate timelines. Also, if you filed an amended return or the IRS made adjustments to your original return, each change creates a new assessment with its own 10-year CSED. So even if your original 2008 tax return's CSED has expired, if the IRS made an adjustment in 2015, that adjustment would have its own CSED expiring in 2025. This is why getting your Account Transcript is so crucial - it shows every assessment and adjustment, not just the original filing. Many people think their debt should be gone based on their filing date, but don't realize there were later assessments that reset the clock.

I might be able to offer some insight based on my experience. After having a somewhat similar issue last tax season, I found that H&R Block was, in my opinion, the most accommodating alternative. They seem to have a fairly straightforward process for refund advances, and they partner with Pathward (formerly MetaBank), which is completely separate from the Credit Karma/TurboTax ecosystem. I was initially concerned about approval odds after having issues with another service, but their requirements appeared to be primarily based on your expected refund amount rather than other factors. Within approximately 48 hours of filing, I received my advance, which was about 25% of my expected refund. This timing worked out particularly well for my inventory purchasing schedule.

I completely understand your frustration - having your Credit Karma account deactivated right in the middle of tax season feels like getting a flat tire on the way to an important meeting! From what I've researched, you definitely have several solid alternatives beyond just TurboTax. FreeTaxUSA offers refund advances through their partnership with Axos Bank, and their fees are typically lower than the big-name competitors. TaxSlayer also has a decent advance program, and I've heard good things about their customer service when issues arise. One thing to keep in mind is that each service uses different banking partners, so Credit Karma's issues shouldn't affect your eligibility elsewhere. Given that you mentioned needing funds for inventory restocking, you might also want to consider filing as early as possible with whichever service you choose - even without an advance, the IRS has been processing refunds faster this year (usually within 21 days if you e-file). Best of luck getting your business back on track!

According to Internal Revenue Manual 21.4.1.3, cycle codes are assigned based on the processing center and submission pathway. The change you're experiencing is consistent with your return being routed to a different processing queue, possibly for manual review as indicated by your 570/971 codes. Per IRS Publication 5344, this is standard procedure when certain verification protocols are triggered. While this may extend processing time, it doesn't necessarily indicate an audit or significant issue with your filing.

I went through this exact same scenario last year! My cycle code switched from 0520 to 0620 overnight, and I was convinced something terrible had happened to my return. Like you, I was desperately waiting for that refund money for some urgent expenses. The cycle change ended up being completely normal - my return was just moved to a different processing batch. It did add about 10 days to my timeline, but everything processed fine in the end. The waiting is definitely nerve-wracking when you need the money, but try not to stress too much about the code change itself. Keep checking your transcript for any new developments, and hopefully you'll see movement soon!

Wondering if anyone had their amendments rejected? My CPA helped me file mine in December for both years, but just got a letter saying my 2020 amendment was rejected because I didn't qualify. Something about not having enough self-employment income?? I definitely had my photography business the whole year and had to cancel shoots due to getting COVID myself.

I filed my Form 7202 amendments back in September 2024 for both years and finally received both payments in January 2025 - took about 18 weeks total. The IRS processed them separately as expected, with the 2020 refund coming about 2 weeks before the 2021 one. One thing that might help others - I called the IRS around week 16 when I was getting worried, and the agent told me that amendments with Form 7202 are taking longer than regular amendments because they require additional review. She said they're being extra careful with these COVID-era credits due to fraud concerns. Both payments came via direct deposit since that's how I received my original refunds. The amounts were exactly what I calculated - $8,200 for 2020 and $6,400 for 2021. I qualified for the family leave credits since I had to stay home with my kids during school closures in both years while running my consulting business. Hang in there Carlos - based on your timeline of 3 weeks ago, you're probably looking at another 12-15 weeks, but the money will come!

I think we're overcomplicating this. The rule is simple - if it's personal, it's not a corporate expense, period. It doesn't matter if you call it non-deductible on M-1, it's still a distribution to the shareholder. The only legitimate non-deductible expenses are things that benefit the corporation but aren't deductible under tax law (life insurance premiums, certain penalties, 50% of meals, political contributions, etc). I tell my clients there are only 3 ways to get money out of a C-corp: 1. Salary for services actually rendered 2. Loans (with proper documentation) 3. Dividends Anything else is just dividends in disguise, and the IRS isn't stupid.

This is exactly the kind of situation that drives me crazy as a tax professional. You're absolutely right to push back on the previous accountant's approach. The fundamental test isn't whether an expense is deductible - it's whether the expense has ANY legitimate business purpose. Personal expenses like family vacations and tuition have zero business purpose and should never touch the corporate books, even as M-1 adjustments. I've seen too many practitioners use the M-1 approach as a lazy way to avoid difficult conversations with clients. But you're setting up both yourself and the client for problems down the road. The IRS has gotten much more aggressive about constructive dividend audits, especially with closely-held C-corps. My advice: bite the bullet now and clean this up. Reclassify the personal expenses as dividends (or loans if there's proper documentation and repayment ability). Yes, it'll create some additional tax liability, but it's better than dealing with an IRS audit that could go back multiple years with penalties and interest. The client may not like it initially, but they'll thank you when they're not facing a massive IRS bill later.