IRS
CommunityGovernment Services
Can't reach IRS? Claimyr calls for you, so you don't have to wait on hold.
Claimyr is a pay-as-you-go service. We do not charge a recurring subscription.
160,000+ people connected since 2021
Using Claimyr will:
- Connect you to a human agent at the IRS
- Skip the long phone menu
- Call the correct department
- Redial until on hold
- Forward a call to your phone with reduced hold time
- Give you free callbacks if the IRS drops your call
Ask the community...
- DO post questions about your issues.
- DO answer questions and support each other.
- DO post tips & tricks to help folks.
- DO NOT post call problems here - there is a support tab at the top for that :)
Filed as 1099 contractor since 2021 but I'm actually a W2 employee - need help recovering what I paid to IRS
I've been going through a tax nightmare and just realized my employment status has been wrong for years. I've been filing as a 1099 independent contractor since July 2021, but I'm actually a W2 employee based on my working conditions. I work for a small residential repair company that contracts with home warranty companies. My boss never gave me W2s or discussed taxes - he just calls it "piece work" where I make more on bigger jobs. He hinted I wouldn't pay much in taxes and could deduct things like uniforms. The reality is: I drive a company vehicle, use a company gas card, they purchase repair supplies, and I just use my personal phone for work calls and GPS. I get paid through Zelle/Venmo directly to my bank account, plus I keep some cash service fees (like $65-80) that I log as income. I've been filing through TurboTax as a 1099 contractor each year, which has resulted in me owing about $12,500 in income taxes. I've set up a payment agreement, but they're still sending me letters about late fees and interest. My pay varies wildly - I might make $65 for a $10,000 repair where the home warranty only covers $2,500, or $40-50 for two hours if a claim is denied. Some days I can make $85 for a 30-minute job or up to $400 for major repairs. Would my taxes be significantly lower if I filed correctly as a W2 employee? Do I have any way to recover what I've overpaid? Should I speak with a CPA before looking for a new job? I'm totally overwhelmed by this situation and don't know where to start.
Join the conversation
IRS Transcript Updated: Code 767 Removed $8,095 Credit, 290 Additional Tax Assessment $0, 971 Notice Being Issued - What's Happening With My $5,595 Refund?
My transcript finally updated after 2 months of nothing. I'm seeing some weird activity on my account and I'm really worried about my refund. I filed Head of Household with 2 exemptions. My AGI was $14,434.00 with taxable income of $0.00 and tax per return of $0.00. Return was received April 15, 2024 with processing date May 06, 2024. Here's what's showing up in my transcript: ACCOUNT BALANCE: -$6,595.00 ACCRUED INTEREST: $0.00 AS OF: Dec. 17, 2024 ACCRUED PENALTY: $0.00 AS OF: Dec. 17, 2024 ACCOUNT BALANCE PLUS ACCRUALS: -$6,595.00 TRANSACTIONS CODE EXPLANATION OF TRANSACTION - CYCLE - DATE - AMOUNT 150 Tax return filed - 20241605 - 05-06-2024 - $0.00 810 Refund freeze - 02-09-2024 - $0.00 766 Credit to your account - 04-16-2024 - -$2,700.00 766 Credit to your account - 04-16-2024 - -$9,095.00 768 Earned income credit - 04-16-2024 - -$4,995.00 971 Amended tax return or claim forwarded for processing - 05-11-2024 - $0.00 977 Amended return filed - 05-11-2024 - $0.00 767 Reduced or removed credit to your account - 04-16-2024 - $9,095.00 290 Additional tax assessed - 20244804 - 12-16-2024 - $0.00 971 Notice issued - 12-16-2024 - $0.00 Got codes 767, 290, and 971 all showing up today. I'm really confused because it looks like they initially gave me credits (766 and 768 codes), then there was an amended return filed (977 code), then they removed one of the credits with code 767 for $9,095.00. Now I see these new codes from December 16. Anyone know if this is good news or should I be worried? I don't understand why they froze my refund back in February (code 810), and why they're now assessing additional tax (290) but with $0.00 amount. And what does the 971 "Notice issued" mean? Will I be getting something in the mail? Really need this refund soon. I was expecting around $6,595 according to my account balance, but now I'm concerned with all these adjustments.
Join the conversation
My transcripts looking exactly the same rn. Its so frustrating trying to figure out what all these random numbers mean tbh
fr fr its like trying to read hieroglyphics 💀
I've been through this exact same situation! Those codes are actually pretty encouraging. The 767 removed a credit that was likely incorrectly applied initially, the 290 with $0 is just a processing marker (not actual additional tax), and 971 means they're sending you a notice - probably just explaining the adjustments. Your account balance of -$6,595 suggests you should still get a refund around that amount. The freeze from February (810) was probably just routine verification that's now been resolved. I'd expect to see an 846 refund code appear in your next transcript update, which usually happens within 1-2 weeks after these adjustment codes show up. Hang in there!
IRS Audit CP75 for 2024 Return: Must Prove Step-Daughter as Dependent, Filing Status, EIC and American Opportunity Credit Eligibility Within 30 Days
I just received a CP75 notice dated March 3, 2025 from the IRS for my 2024 tax return. They're auditing my return and holding my Earned Income Credit and Additional Child Tax Credit portions of my refund. The notice (CP75 PC0289) was sent from the IRS Examination Operations at 310 Lowell St Stop 854, Andover, MA 01810-0001. They're auditing my 2024 Form 1040 and I need to send supporting documentation within 30 days from the date of the notice. According to the letter, if I don't respond within that timeframe, they'll send an audit report proposing to disallow the items being audited, and I may owe additional tax. I've been claiming my step-daughter for the past 3 years with no issues, but now they're asking for documentation to prove she qualifies as my dependent. The notice specifically says I need to "Review the enclosed Form 886-H-DEP, Supporting Documents for Dependents" and "Submit the documentation requested to show you have eligible dependents." They're also questioning my Earned Income Credit eligibility, asking me to "Review the enclosed Form 886-H-EIC, Documents You Need to Send to Claim the Earned Income Credit on the Basis of a Qualifying Child or Children for tax year 2024" and "Submit the documentation requested to show your child or children met the relationship, age and residency tests." Additionally, they're questioning my filing status and want me to "Review the enclosed Form 14824, Supporting Documents to Prove Filing Status" and "Submit the documentation requested to verify your filing status." On top of all that, they're questioning the American Opportunity Credit I claimed, asking me to "Review the enclosed Form 886-H-AOC, Supporting Documents to Prove American Opportunity Credit" and "Submit the documentation requested to show you had eligible education expenses." The notice gives me a contact number of 866-897-0177 and my Caller ID is 278992. Has anyone gone through this process before? What kind of documentation would prove our relationship since she's not my biological child? Her mom and I aren't legally married but we've been living together for 6 years and I provide most of the financial support. I'm worried I'll end up owing a lot if they reject everything.
Join the conversation
Ask the kid's school for an attendance record or enrollment verification letter showing your address. Schools usually have a form letter they can print out quickly that shows the child's address and guardian info. Most important thing is responding quickly and thoroughly.
I went through this exact same audit situation two years ago with my partner's son. The key thing that saved me was creating a comprehensive timeline document showing his residency throughout the entire year. I included: - Monthly utility bills with both our names/address - School enrollment records from August showing my address as his home address - Medical appointment records from his pediatrician (I was listed as the person who brought him) - Bank statements showing regular purchases of his school supplies, clothes, food throughout the year - A signed statement from his teacher confirming he lived at my address Since you're not legally married to her mom, focus heavily on the "member of household" test - you need to prove she lived with you for more than half the year (183+ days) and that you provided more than half her support. The IRS approved my claim and I kept all my credits. The whole process took about 10 weeks from when I mailed my response to getting my refund released. Don't stress too much - if you have the documentation, you should be fine. Just make sure to respond within the 30 days and keep copies of everything you send!
1120-S Penalty for Filing Late - How to Get a Reduction?
So I royally screwed up this year and submitted my 1120-S on regular tax day (April 15), completely forgetting that S-Corps have that earlier March 15 deadline. This is only my third year with an S-Corp and I could have sworn I remembered the deadlines correctly (I did file on time the previous two years). I just got hit with a notice from the IRS saying I owe a penalty of around $560 for being two months late, although by my calculation it was really just one month and a few days late. I fully admit I messed up and had no legitimate excuse - just plain forgot the deadline was different. Has anyone successfully gotten these kinds of penalties reduced? I'm not trying to get out of paying completely since I know I was late, but the amount seems pretty steep for a small business like mine. I'm wondering if writing a letter explaining it's my first time missing the deadline might help? Or is it better to just pay it and move on?
Join the conversation
Anyone else notice how the IRS says your 1120-S was "two months late" when it was actually one month and a few days? They count partial months as full months for penalty calculations. So even if you're just ONE DAY late into a new month, they charge you for that entire month. Totally frustrating but that's how they calculate it.
Yep, this is exactly why I always file at least 5 days before any deadline now. I learned this lesson the hard way too. Even a day late and they count it as a whole extra month for penalty purposes.
I just went through this exact same situation last month! Filed my 1120-S on April 15th thinking I was on time, then got slapped with a $480 penalty notice. The March 15th deadline for S-Corps really catches people off guard. I called the IRS and asked specifically for "First-Time Penalty Abatement" (as others mentioned, you HAVE to use those exact words). The agent reviewed my filing history, confirmed I'd been compliant for the past 3 years, and approved the abatement on the spot. No forms to fill out, no documentation needed beyond my EIN and the penalty notice number. The whole call took about 25 minutes including hold time, and I got the confirmation letter 2 weeks later showing $0 balance. Definitely worth making the call before just paying it - the IRS is surprisingly reasonable about genuine first-time mistakes when you have a clean compliance history.
How quickly should I pay my Form 4549 to avoid additional interest charges?
I just sent my signed Form 4549 back to the IRS today for a deduction they disallowed on my business expenses. The IRS calculated interest up to March 15, 2025, but I'm worried about getting hit with more interest charges because they're notoriously slow at processing these forms and acknowledging receipt. My concern is that if I wait for them to officially post the balance online before paying, I'll end up paying even more in interest. I got a Letter 525-T in the mail with the proposed amount, but when I check my account online, there's no balance showing yet. Should I just go ahead and make the payment online using the amount from the Letter 525-T even though no balance is showing on my account? I'm worried my payment might get lost in their system if I pay before they've officially posted the balance. Has anyone dealt with this situation before and have advice on the best way to handle it?
Join the conversation
Another option to consider is using IRS Form 809 with your payment. This is a payment posting voucher that can help ensure your payment gets applied correctly. When I had a similar situation with a Form 4549, my accountant suggested this approach, and it worked perfectly. You'll need to write your SSN, tax year, form number (1040), and "Form 4549 Audit Assessment" in the memo line of your check. Then mail it to the address on your Letter 525-T, not the regular payment address. Keep copies of everything and send it certified mail with return receipt requested for proof.
Is Form 809 something regular taxpayers can access? I tried looking it up and couldn't find it on the IRS website. Do you have a link to it?
I just double-checked, and I made a mistake about the form number - sorry about that! Form 809 is actually an internal IRS form that taxpayers don't have access to. What I should have referred to is simply including a payment voucher with your check. You can use Form 1040-V as a payment voucher, or simply include a letter with your payment that clearly states your name, SSN, tax year, form number, Letter 525-T reference number, and that it's for an "Agreed Audit Assessment - Form 4549." The key is providing enough information so they can properly apply your payment.
Has anyone actually had a payment get "lost" when paying before the balance shows up online? I'm in the same situation with my 4549 and worried about this.
Thanks for sharing your experience! Did you use Direct Pay or did you mail a check? I'm wondering if the payment method makes a difference in how quickly it gets applied.
I used Direct Pay online, and you're right to ask about the payment method. From what I learned afterward, electronic payments through Direct Pay or EFTPS generally get processed faster than mailed checks, but the key issue is that interest keeps accruing until the IRS officially posts the assessment to your account - not just when they receive your payment. The lesson I learned is that while paying early protects you from forgetting or delays on your end, the interest clock doesn't actually stop until they complete their internal processing. Still better to pay early though, because at least you're not adding more delay on top of their processing time.
Mateo Hernandez
Has anyone ever successfully got an employer to reclassify them without going straight to the IRS? Im in a similar situation but my boss is my uncle and I really dont wanna cause a family problem...
0 coins
CosmicCruiser
I actually managed to do this! The key was approaching it from a "this benefits both of us" angle instead of making it confrontational. I showed my boss an article about how misclassification penalties can be severe (like 100% of unpaid taxes plus interest), but that the IRS has voluntary classification settlement programs where employers face much lower penalties if they self-correct. Framing it as "I'm trying to help us both avoid bigger problems down the road" worked well. Maybe try that approach with your uncle?
0 coins
Isaiah Thompson
The advice here about Forms SS-8 and 8919 is spot-on, but I want to emphasize something crucial: document EVERYTHING before you file anything with the IRS. Take photos of the company vehicle you drive, save screenshots of any text messages about work assignments, keep records of the company gas card usage, and document how your boss directs your work. Also, calculate how much you've been overpaying in self-employment taxes. As a 1099 contractor, you're paying 15.3% in self-employment taxes (both employer and employee portions of Social Security and Medicare). As a W2 employee, you'd only pay 7.65% with your employer covering the other half. On $12,500 in taxes, that difference could be substantial. One more thing - consider consulting with an employment attorney, not just a CPA. Worker misclassification often involves more than just tax issues. You mentioned varying pay and potentially working long hours - there could be minimum wage and overtime violations too. Many employment attorneys work on contingency for these cases, meaning you don't pay unless you win.
0 coins