As someone who's dealt with multiple IRS notices over the years, I want to add that the 12C letter will have very specific instructions about what documentation to send and where to send it. Don't send everything you have - only what they specifically request. I made that mistake once and it actually delayed my case because they had to sort through unnecessary paperwork. Also, if you're missing any of the requested documents (like a lost receipt), you can often substitute with bank statements showing the transaction, canceled checks, or even a sworn statement explaining the missing documentation. The key is to respond within the timeframe given - usually 30 days from the letter date - and to be thorough but focused in your response.

I received a 12C letter about 6 months ago regarding some business equipment deductions I claimed as a freelance photographer. The process was actually much smoother than I anticipated. The letter clearly outlined that they needed receipts for camera equipment purchases over $2,500 and documentation showing the business use percentage. I gathered my purchase receipts, created a simple log showing when I used the equipment for paid shoots vs personal use, and included a brief cover letter explaining my business model. The whole thing was resolved in about 5 weeks with no changes to my return. One tip: if you're still waiting for the letter to arrive, start organizing your 2023 tax documents now - receipts, 1099s, bank statements, etc. Having everything organized made my response so much easier when the time came.

One thing nobody's mentioned is that charitable deductions are subject to income limits - you can't just donate your entire income and pay zero tax. For cash donations, you can deduct up to 60% of your AGI. For appreciated assets (stocks, etc.), it's limited to 30% of AGI. Also, the phase-out of itemized deductions can reduce the benefit for very high earners. And if you're subject to AMT (Alternative Minimum Tax), the deduction value can be different than your normal tax rate. The tax code around charitable giving is SUPER complicated and most people (including many tax preparers) don't fully understand all the strategies and limitations.

The key insight you're missing is that wealthy people often aren't just trying to minimize their current tax bill - they're playing a much longer game with wealth preservation and transfer. Here's what really happens: When someone creates a charitable remainder trust (CRT), they can donate appreciated assets, get an immediate charitable deduction, avoid capital gains tax, AND still receive income from those assets for life. Then whatever's left goes to charity. So they're not really "giving away" the full amount - they're restructuring how they access that wealth while getting tax benefits. For family foundations, the ultra-wealthy can donate assets, get the deduction, maintain control through board positions, employ family members, and the foundation only needs to give away 5% annually while the other 95% grows tax-free. Over generations, this can actually preserve more wealth than paying taxes would have. The real strategy isn't about being "less poor" than paying taxes - it's about maintaining control and influence over capital while getting tax advantages. They're essentially converting taxable wealth into tax-advantaged wealth that still benefits them and their families, just in different ways.

3 Just to add - I've worked in tax preparation for years, and I want to emphasize that the IRS absolutely can tell the difference between an honest mistake and deliberate fraud. Remember that your employer sent a copy of that W-2 to the IRS already, so eventually their automated matching system would flag the discrepancy. But by filing an amended return before they contact you, you're demonstrating good faith. The IRS generally looks at patterns of behavior. A single forgotten W-2 that you correct voluntarily? Not a big deal. Repeatedly "forgetting" income or claiming false deductions year after year? That's when they start looking more carefully.

18 There's a LOT of misinformation about going to jail for tax mistakes. To be clear: the IRS has to prove WILLFUL evasion to pursue criminal charges. Forgetting to include a W-2 is not going to meet that standard! I used to work at a tax resolution firm, and in 5 years I never saw a single case where someone went to jail for an honest mistake like this. The people who face criminal charges are the ones who set up elaborate schemes to hide millions, file totally fake returns, or consistently lie to IRS agents during an audit. File your amendment, pay what you can, and set up a payment plan for the rest. I promise you'll be fine.

I was in this exact situation in February. According to Internal Revenue Manual 13.1.7.2, TAS is required to accept cases meeting specific criteria regardless of workload. However, in practice, they're currently screening cases very strictly. I documented my financial hardship (impending car repossession due to delayed refund) and referenced the specific IRM section when I called. They initially tried to defer me but ultimately accepted my case when I politely insisted and cited the regulations.

Thanks for sharing that IRM reference! That's really helpful. I'm dealing with a similar situation where my refund delay is causing financial strain, but I wasn't sure about the specific regulations that might apply. Did you have to provide written documentation of your car repossession notice, or was verbal explanation sufficient when you cited the IRM section? I want to make sure I'm prepared with the right approach when I call.

OMG this EXACT thing happened to me!!! 😤 The IRS verification system is SO broken this year! I'm seeing this issue EVERYWHERE in tax groups. Here's what works: IGNORE the message disappearing and verify anyway! The verification requirement is still in their system even if it's not showing up. I was freaking out when this happened but verified with my control number anyway and got my refund 11 days later! Don't wait for the message to reappear because it probably won't. Trust me on this one! 💯

I can relate to this frustration - it's like the IRS is playing hide and seek with important notices! Based on what others have shared here, it seems the verification requirement is still active even when the message disappears from your account. Since you have the physical letter with the control number, I'd recommend proceeding with verification rather than waiting. You can go directly to idverify.irs.gov or call 800-830-5084 to complete the process. It's better to verify and potentially do it unnecessarily than to let your refund get held up for months. The consensus from everyone's experiences here seems to be that the system glitch is cosmetic - the verification hold is still there behind the scenes.