I'm in a similar situation - got the call from the IRS yesterday and they mentioned the 5747C letter is coming. Reading through everyone's experiences here is really helpful! It sounds like there's no getting around the in-person appointment, which is frustrating but at least now I know what to expect. I'm particularly concerned about the wait times for appointments since I need to get this resolved quickly. Has anyone had success calling first thing in the morning to get through to schedule faster? Also wondering if all TAC locations have similar wait times or if some are better than others in terms of availability.

Just wanted to add my perspective as someone who went through this process recently. The 5747C verification is definitely in-person only - no exceptions. What helped me was being super organized beforehand. I made a checklist of all required documents from the letter and gathered everything the night before my appointment. Also, I'd recommend bringing a book or something to do while you wait, even with an appointment there can still be delays. The IRS agents are actually pretty helpful once you get in there, and they'll walk you through exactly what they need to verify. One thing that surprised me was how quickly my case moved forward after verification - got my refund about 10 days later. The inconvenience is real, but the actual process isn't as scary as it seems from all the horror stories online!

I think what's happening is your old CPA was allocating losses based on the partnership agreement (by ownership %), but the new CPA is saying this violates the "economic effect" rules in Section 704(b). Basically, for loss allocations to be respected, they need to have "substantial economic effect" - meaning the partner who takes the tax loss should bear the economic burden of that loss. If one partner is funding everything, they may be entitled to more losses regardless of ownership %. This is super complex territory that even experienced CPAs get wrong. The new CPA might be right technically, but it creates a mess when changing approaches midstream. You need someone to prepare a complete basis schedule from inception to present to sort this out properly.

This is a really complex situation that highlights why partnership taxation is so tricky. Based on what you've described, it sounds like you're caught between two different approaches to loss allocation - one based purely on ownership percentages, and another based on economic risk. The key issue here is that partnership tax law requires loss allocations to have "substantial economic effect" under Section 704(b). This means the partner claiming the loss should actually bear the economic burden if the partnership fails. If one member is funding most operations while others take equal loss allocations, that can create problems. Your negative capital account might actually be less concerning than it appears. What really matters for your ability to deduct losses is your "outside basis" - which includes your capital contributions plus your share of partnership liabilities. Even with a negative capital account, you might still have positive basis if the partnership has debt allocated to you. A few questions that might help clarify your situation: - Does the partnership have any loans or debt that would be allocated among partners? - What does your partnership agreement say about loss allocation and capital account maintenance? - Are there any guarantee provisions or deficit restoration requirements? Given the complexity and the fact that you're getting conflicting advice from CPAs, you might want to consider getting a third opinion from someone who specializes in partnership taxation. The difference between the two approaches could have significant implications for both current and prior year returns.

Just make sure you're reporting everything correctly! My brother tried to just "net" his gambling wins and losses a few years back (only reporting the difference) and got hit with an audit. The IRS requires you to report the FULL amount of the 1099-MISC as income, then deduct losses separately on Schedule A if you itemize. Don't make that mistake - the IRS computers will flag the mismatch between your reported income and what Underdog submitted on your 1099.

I went through almost exactly this situation two years ago - had a big 1099-MISC from FanDuel but overall losses for the year from other sites. Here's what I learned the hard way: You absolutely MUST report that full $10,400 as income even though you had net losses. Don't try to just report the "net" - the IRS computers will catch that immediately since Underdog already reported paying you $10,400. The good news is you can deduct your gambling losses, but only if you itemize deductions on Schedule A. You can deduct up to the amount of your winnings ($10,400 in your case), so theoretically you could zero out the tax liability from the gambling income. However, here's the catch that got me - you need to compare your total itemized deductions (including the gambling losses) to the standard deduction. If your standard deduction is higher, you're better off taking that and just paying tax on the $10,400. For the Bovada losses, keep every record you can find - transaction history, bank statements showing transfers, screenshots of your account summary. The IRS doesn't specifically exclude offshore sites, but documentation is absolutely critical. One more thing - don't forget about state taxes! Some states don't allow gambling loss deductions at all, so you might owe state tax on the full amount even if you can offset it federally.

Pro tip: check your transcript instead of WMR. Its more accurate and updates faster. You can pull it on irs.gov if you make an account

Don't stress too much! I filed around the same time last year and it took almost a week before WMR updated. The IRS processing centers are slammed right now with early filers. As long as you got the transmission confirmation from TurboTax, you're good. The system just needs time to catch up. If you're really anxious, try checking your transcript like others mentioned - it usually shows acceptance before WMR does.

This is really encouraging news! I'm in almost the exact same situation - my refund was sent to a closed Credit Karma account from last year. I've been dreading having to deal with the IRS phone system after hearing all the horror stories about wait times. The fact that Credit Karma can handle this directly and just mail a check is such a relief. I'm definitely going to try their chat support tomorrow morning. Did they give you any timeline for when you might receive the check? Also, did you need to provide any additional documentation or verification during the chat, or was it pretty straightforward once they confirmed they had received your refund? Thanks so much for sharing this - you probably just saved a bunch of us a lot of stress and time!

This is such a relief to hear! I've been dealing with a similar nightmare - my refund went to a closed Chime account and I've been calling the IRS for over a month with no luck getting through. I had no idea that some banks could handle this by mailing checks directly instead of just bouncing everything back to the IRS. Just to be safe, I'm going to follow the advice from @a05e8abdb230 and screenshot everything when I contact Chime tomorrow. After reading about people having promises made with no follow-through, I definitely want to have documentation of any commitments they make. Has anyone else had success with other banks doing this same thing? I'm curious if this is becoming more common or if Credit Karma is just being unusually helpful here. Either way, thanks for sharing this update - you might have just saved me weeks of additional waiting!