Call the number on the letter ASAP. The TAS advocate assigned to you can explain exactly what they need.

Just wanted to add - when you respond to the 13RCA letter, make sure to include the case number that's on the letter with any documents you send. Also keep copies of everything! The TAS is really helpful once you get through to them, they actually have more power than regular IRS customer service to resolve issues.

This is a great discussion that highlights a common area of confusion! As someone who's dealt with similar rental property tax situations, I want to emphasize that the IRS is very clear about this in their guidance, even though it's not always intuitive. The key principle is that when property is used in a trade or business (which includes rental activities), the expenses directly related to that activity are business deductions that offset the income from that activity. This applies whether you're renting out a house, an apartment building, or bare land. What I've found helpful is thinking about it this way: if you were to sell the property tomorrow, would you report the gain/loss as investment income or business income? Since you're actively engaged in a rental business with this land, it would be business income, which means the ongoing expenses should also be treated as business expenses. For anyone still uncertain about their specific situation, I'd recommend reviewing IRS Publication 527 and possibly consulting with a tax professional who specializes in rental property. The distinction between investment property and rental property can make a significant difference in your tax liability, especially with the current SALT deduction limitations on Schedule A.

I ran into this exact same issue a few years ago with some farmland I inherited and started renting out. The confusion often comes from older tax guidance or preparers who aren't familiar with rental property rules for bare land. The bottom line is simple: if you're collecting rental income from the property, it's a rental business activity regardless of whether there are buildings on it. Your $2,800 in rental income goes on Schedule E, and your $1,450 in property taxes (plus any other legitimate rental expenses) offset that income on the same schedule. I made the mistake of putting my property taxes on Schedule A for two years before figuring this out. Not only did I get minimal benefit due to the standard deduction being higher, but I was also artificially inflating my rental income on Schedule E by not offsetting it with the related expenses. The key test the IRS uses is whether the property is held for the production of income through rental activity. Since you have a legitimate rental arrangement with the farmer at fair market value, you clearly pass that test. Save yourself the headache and put those property taxes where they belong - on Schedule E as a rental expense.

mine took exactly 12 days to come. hang in there!

Same situation here - filed about 2.5 weeks ago and still waiting on my 5071C letter. The uncertainty is killing me! Has anyone had luck with the online ID.me verification process, or is the phone/letter route really the only way? Also wondering if the postal service delays might be making this even longer than usual.

My tax lady said direct deposits usually hit Wednesday or Thursday after presidents day. Been filing with her for 5 years and shes always right

Same situation here! Filed Jan 27th with EITC and CTC. From what I've read, the IRS systems will still process on Feb 15th even though it's Saturday, but yeah the banking delays from Presidents Day weekend mean we're probably looking at Feb 19th-21st for actual deposits. It's frustrating but at least we know the PATH hold will officially lift on time.

I'm dealing with the exact same frustration! Filed my Colorado return on March 8th and it's been over 3 months now with just that useless "processing" status. My federal refund arrived in February while Colorado is still radio silent. After reading through all these comments, I'm definitely going to check my full DOR account online instead of just relying on the refund tracker - sounds like there might be messages or requests buried in there that the basic tool doesn't show. Also going to be extra careful checking my mail for any official notices that might look like junk mail. The fact that so many people are experiencing 12-16 week delays (or longer!) is really concerning. It seems like Colorado's tax department is completely overwhelmed this year. At least knowing it's not just me makes me feel slightly better, but still incredibly frustrating that we have to play detective just to get basic information about our own money! Has anyone had success with calling early in the morning right when they open? Might try that before exploring some of the other tools people have mentioned here.

Same exact situation here! Filed my Colorado return on March 14th and it's been radio silence ever since. The federal refund came through in early April but Colorado is still showing "processing" with zero useful details. After reading through all these experiences, I'm definitely going to log into my full DOR account instead of just checking the basic refund tool. Sounds like there could be important messages or requests hiding in there that the simple tracker doesn't display. Also going to go through my mail more carefully - apparently they send notices that look like junk mail which is ridiculous. It's somewhat reassuring to know this isn't just affecting me, but absolutely maddening that Colorado's system is this broken. 12-16+ week delays with no communication is completely unacceptable. We shouldn't have to become tax detectives just to get our own money back! Going to try calling right when they open at 8:30am tomorrow and see if I can actually get through to a human. If that doesn't work, I might look into some of the other solutions people have mentioned here. This is beyond frustrating.