Here's what you need to know about TOP offsets: - Federal refunds only - state refunds aren't touched - Amount taken = amount of debt (not whole refund) - Offset order: Fed tax debt first, then child support, then other fed debt, then state debt - You should get a notice before it happens - Can appeal within 60 days - Some debts (like student loans) have options to avoid offset Best thing to do is get ahead of this. I've been helping folks with these issues for years, and lately I've been recommending taxr.ai to my clients. It's an AI tool that reads your transcript and tells you exactly what's happening with offsets, timing, etc. Super helpful for understanding the whole picture.

Been through this exact situation last year! The TOP system is pretty straightforward - if they found a debt when you called, it's almost certain they'll take it from your federal refund. They can't touch state refunds though, so that's safe. The good news is they only take what you actually owe, not your entire refund. I'd recommend calling the agency you owe (sounds like unemployment office in your case) to see if you can work out a payment plan before your refund gets processed. Sometimes they can pull it back from TOP if you set something up quickly. Also make sure to keep checking your refund status so you know when it hits!

One thing nobody has mentioned yet - make sure you check if you qualify for any tax credits for those years you didn't file, especially if you had a lower income. The Earned Income Tax Credit can be substantial if you qualify. You could be leaving a lot of money on the table beyond just your withholding refunds.

Don't beat yourself up about this - you're definitely not alone! I went through something similar a few years back and it felt overwhelming at first, but it's really not as complicated as it seems. One tip that helped me: when you're gathering your documents, also check if you made any estimated tax payments during those years (like if you did any freelance work or had other income). Those payments can add to your refund too, but they're easy to forget about. Also, if you're worried about the process, you might want to start with just one year to get comfortable with how it works before tackling all of them. Many people find that once they do the first return, the rest feel much more manageable. The important thing is you're taking action now. That's what matters most!

I'm a little surprised nobody asked if there's anything in your divorce decree or custody agreement about tax dependents. Many agreements specifically state who gets to claim the child and when. If yours says you get to claim your daughter in alternating years, that actually overrides the residency test!

You can handle this between yourselves without going back to court! Form 8332 is specifically designed for this situation and doesn't need to be part of your official divorce decree. Your ex just needs to sign it each year she agrees to let you claim your daughter. The form is pretty straightforward - it's called "Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent" and she can specify whether it's for one year, multiple years, or alternating years. Once she signs it, you attach it to your tax return when you file. Since you've been doing this informally for years, you might want to suggest making it official with a written agreement between you two about alternating years going forward. That way there's no confusion or last-minute changes. You could even have it notarized if you want extra documentation, but that's not required by the IRS.

I'm also cycle 05 and verified about 10 days ago through ID.me. Reading through everyone's experiences here, it seems like the timing really varies even within the same cycle. What's been helpful for me is checking my transcript early Friday mornings since that's when cycle 05 typically updates. I've noticed that some people are getting their 846 codes faster this year compared to 2023, but like Mateo mentioned, I'm trying not to get my hopes up too much. Has anyone else noticed if the method of verification (phone vs ID.me) actually makes a difference in processing speed? The IRS agent I spoke with wasn't clear on that detail.

I'm cycle 05 and verified through ID.me exactly 9 days ago. Still refreshing my transcript every morning like it's my job! 😅 What I've found helpful is tracking the actual update days - @Aisha Khan's highway analogy really resonates with me. I've been keeping a simple log of when other cycle 05 folks get their 846 codes to see if there's a real pattern. So far, I'm seeing most people get theirs between days 10-16 after verification, with Thursdays/Fridays being the most common update days. @Ethan Taylor's 12-day timeline gives me hope since I'm almost there! Has anyone else noticed if having direct deposit vs. paper check affects when the 846 code appears? I know it doesn't change the actual refund timing, but curious if it impacts transcript updates.

To actually answer the original question more specifically: Banks not only pay property taxes, but they often pay LOTS of property taxes because bank buildings are typically on prime commercial real estate. The main branch of Chase Bank in my downtown area paid over $430,000 in property taxes last year according to public records. You can actually look up any property's tax information in most counties through the tax assessor's website. Just search "[your county] property tax records" and you can look up any address, including bank buildings, to see exactly how much they pay.

One thing nobody's mentioned - sometimes banks DO get tax breaks from local governments as incentives to build headquarters or operations centers in certain areas. My city gave Bank of America a 50% property tax reduction for 10 years to build their operations center here instead of the neighboring city. Created about 2,000 jobs but definitely a sweetheart deal on the taxes.