Check your mail everyday! 971 means theyre sending something. Could be good could be bad but atleast its movement

Looking at your transcript, that 971 code from 12/11/2024 is likely related to your amended return processing. Since you filed the amendment in July and it shows as processed in August (based on those codes), this new 971 could be the IRS issuing a final notice about your refund adjustment. The fact that they told you it was "released" is promising - usually when they say that, the money follows within 2-3 weeks. Keep checking WMR and your bank account. The 971 isn't necessarily a delay, just documentation that they're sending you something in the mail explaining the final numbers.

17 Has anyone actually had the IRS contact them over a wrong address on a W2? I've had this happen twice (once my employer put the wrong apt number, once they used my old address) and filed with my correct address both times. Never heard a peep from the IRS about it.

I'm a tax preparer and can confirm what others have said - address discrepancies on W-2s are extremely common and won't cause any issues with your tax filing. The IRS uses your SSN as the primary identifier, and the financial data (wages, withholdings) is what matters for processing your return. When you file your 2024 tax return, just use your correct current address. This automatically updates your address of record with the IRS. I've prepared thousands of returns over the years with similar situations and have never seen the IRS flag or delay a return due to a W-2 address mismatch. Your concern about missing correspondence is understandable, but since you'll be filing with your correct address, any future IRS communications will go to the right place. The only time address issues become problematic is if there are discrepancies in the actual tax data (income amounts, withholdings, etc.), which isn't your situation.

Don't forget to also look at your state tax rules! I'm in California and our rules for business deductions sometimes differ from federal. I had zero income in my consulting business in 2023 but was able to carry forward some of those losses to offset income when I started making money again in 2024.

Sarah, you're definitely not alone in this situation! I went through something similar with my freelance graphic design business a couple years ago. Zero income but thousands in legitimate expenses. The key thing is documenting your profit motive. Keep records of all your client outreach efforts - emails, proposals sent, networking events attended, website analytics showing you're actively marketing, etc. I created a simple spreadsheet tracking my business development activities each week, which really helped when I had questions about my deductions. Also consider joining professional associations in your field if you haven't already. The membership fees are deductible business expenses, and it shows you're serious about your profession. I joined the local chamber of commerce and a digital marketing group - both were great for networking and added credibility to my business operations. One more tip: if you're using part of your home exclusively for business, make sure you're claiming the home office deduction properly. Even with zero income, this can help establish that you have a dedicated business space, which supports your case that this is a legitimate business operation.

One thing nobody's mentioned - make sure you consider state tax implications too! Some states don't fully conform to federal treatment of Real Estate Professional status. I had a client in California who qualified federally but still had limitations at the state level. Also, if they're planning to expand their portfolio in 2025, they should start keeping track of their time spent researching properties, meeting with realtors, securing financing, etc. While these hours don't count toward 2024's 750-hour requirement, having this documentation ready for 2025 will strengthen their position going forward. Another consideration: have them create a formal business entity for their real estate activities. While not strictly necessary for Real Estate Professional status, having an LLC or other formal business structure helps establish the "trade or business" aspect rather than just being an investment activity.

Great discussion here! I want to add something that might help with the audit risk concern - documentation timing is absolutely critical. Since your client has already tracked 750+ hours, make sure those logs were created contemporaneously (at the time the work was done) rather than reconstructed later. The IRS can often tell the difference. Also, regarding the single duplex concern - I've seen successful Real Estate Professional claims with just one property when the taxpayer was doing significant rehab or dealing with high-maintenance situations. The key is demonstrating that this truly constitutes a "trade or business" rather than passive investment management. One practical tip: have your client start photographing their work as they do it, not just before/after shots. Time-stamped photos of them actually performing repairs, dealing with tenant issues, etc. can be powerful evidence if audited. And make sure they're documenting tenant interactions - phone calls, texts, emails about maintenance requests, lease renewals, etc. Since they're planning to expand, I'd also recommend they start treating this more formally as a business now - separate bank account, formal record-keeping system, maybe even business cards. This helps establish the "trade or business" nature of their activities.

I went through something very similar last year - filed early February, got the "approved" confirmation from my tax software, then weeks of "no record found" on the IRS website. It's absolutely maddening! Here's what I learned: the IRS system is basically broken in terms of communication. When they say "no record found" online but then acknowledge your return exists when you call, it usually means your return is sitting in some kind of review queue that doesn't show up in their public-facing system. A few things that might help: - Try calling the IRS again and ask specifically for your "account transcript" - sometimes different agents have access to different information - If you have any tax documents from your employer or school, double-check that all the numbers match exactly what you reported - Keep detailed records of every conversation with the IRS, including dates and what they told you The waiting is brutal, especially when you're counting on that money. But in my experience, these delays almost always resolve eventually - it's just a matter of the IRS working through their backlog. Hang in there!

I'm dealing with the exact same frustration right now! Filed through TurboTax in early February and it's been radio silence from the IRS for over a month. The "Where's My Refund" tool is completely useless - just keeps saying "still being processed" with no timeline or explanation. What's really annoying is that I know people who filed weeks after me and already got their refunds. It feels so random and unfair, especially when you're counting on that money for important expenses. I've been hesitant to call the IRS because I keep hearing horror stories about the wait times, but reading these comments makes me think I need to bite the bullet and try to get through to someone who can actually tell me what's going on. The not knowing is honestly worse than just being told there's a problem that needs to be fixed. Thanks for posting this - at least now I know I'm not the only one going through this nightmare!