


Ask the community...
I've dealt with Indiana DOR reviews before and they're actually pretty routine! The key thing to remember is that this is just a documentation check, not an audit. They picked your return likely because you have Schedule C income and they want to verify everything matches up. Here are some tips: 1) Start with your business description - just write a simple paragraph about what you do and when you started 2) For your top 3 expense categories, gather receipts, bank statements, or canceled checks 3) For income documentation, your 1099s and any other income records should work 4) The INTIME portal is definitely the way to go - much faster than mail. Since you have until February 27th, you're in good shape time-wise. Don't let this stress you out too much - as long as you reported everything honestly, you'll be fine!
This is so reassuring to hear from someone with actual experience! I've been spiraling since I saw this letter coming in my informed delivery. Your breakdown makes it seem way more manageable. Quick question - when you mention "top 3 expense categories," do they mean the three highest dollar amounts or the three most frequent types of expenses? I want to make sure I'm organizing this correctly before submitting through INTIME.
I've been through this exact same Indiana DOR review process and can tell you it's really not as intimidating as it seems! The fact that they're giving you a full month to respond is a good sign - this is standard compliance verification, not an emergency audit situation. A few quick tips from my experience: Make sure your business description is clear and concise (mine was just 2-3 sentences), organize your expense documentation by category before uploading, and definitely use the INTIME portal with your Letter ID - you'll get confirmation within 24 hours that they received everything. The whole process took me maybe 3-4 hours total to gather docs and upload them. You've got this! πͺ
Thanks for the encouragement! As someone new to dealing with any kind of tax review, hearing from people who've actually been through this process is incredibly helpful. The 24-hour confirmation through INTIME sounds like a huge relief - I was worried about whether my documents would even make it to the right place. Your point about it being standard compliance verification really helps put this in perspective. I'm definitely going to follow your advice about organizing by category first before uploading everything!
Has anyone used TurboTax for this kind of situation? Their multi-state option seems expensive but wondering if it's worth it or if it even handles this kind of situation properly.
I used TurboTax last year for a similar situation (spouse in NY, me in NJ). It handled it okay but I had to be really careful about how I entered everything. The software doesn't always make it clear which state certain income or deductions should go to. I ended up calling their support line twice to confirm I was doing it right.
I went through almost the exact same situation last year! My wife and I were in different states (she was in Oregon, I was in Texas) for about 10 months due to work. Here's what we learned: You're absolutely right that you can file jointly for federal and separately for each state. Since California is a community property state, you'll likely need to report half of your combined income ($85k) on your CA return, even though your husband doesn't work there. Colorado isn't a community property state, so your husband will mainly report his Colorado income. For the mortgage situation - since the house is in Colorado and you're both on it, the mortgage interest deduction will generally go on the Colorado return. However, if you're itemizing on your federal joint return, make sure you're coordinating this properly between states. One thing that caught us off guard was California's disability insurance (SDI) tax - make sure you understand how that applies to your portion of the community income. Also, don't forget to look into any credits for taxes paid to other states to avoid double taxation. Given the complexity with community property rules and your rental situation, it might be worth consulting a tax professional who specializes in multi-state returns, at least for this first year. The peace of mind was worth it for us!
This is super helpful, thanks! I hadn't even thought about the SDI tax implications for community property income. Just to clarify - when you say I need to report half of our combined income ($85k) on my CA return, does that mean I report $85k total or that I split our $170k combined income and report $85k? And did your wife in Oregon have to deal with similar community property issues, or is that specific to California? Also wondering about the rental apartment I have in California - can I deduct any of those rental expenses on my CA return, or does that get complicated since we're filing jointly federally but separately for state?
Please keep in mind that even if you don't qualify for a car deduction, you might still get tax benefits from the sales tax you paid on the purchase! If you itemize deductions on Schedule A (instead of taking the standard deduction), you can include the sales tax paid on major purchases like vehicles. There's a sales tax deduction calculator on the IRS website that can help you figure out if this would benefit you. With a $13,500 down payment, I'm guessing the total car price was significant enough that the sales tax might make itemizing worthwhile.
But wouldn't you need enough other itemized deductions to exceed the standard deduction for this to be worth it? Standard deduction is like $27,700 for married filing jointly in 2023.
You're absolutely right about needing enough other itemized deductions to exceed the standard deduction. For married filing jointly, you'd need your total itemized deductions to exceed $27,700 for 2023. The sales tax on a vehicle purchase can help push you over that threshold when combined with other itemized deductions like mortgage interest, property taxes (subject to the $10,000 SALT cap), and charitable contributions. It's most beneficial for people who are already close to the standard deduction amount with their other itemized deductions.
Just wanted to chime in as someone who went through a similar situation last year. The advice here about car downpayments not being deductible for personal use is spot on - I learned this the hard way after spending hours trying to figure out how to claim mine! One thing that might help with your ITIN amendment situation: when you mail Form 1040-X, make sure you write "ITIN RENEWAL" clearly at the top of the form. This helps the IRS processing center route it to the right department faster. Also, send it certified mail so you have proof of delivery - amendments can get lost in the mail and you'll want to be able to track it. The 16-20 week processing time mentioned earlier is unfortunately accurate. I'd recommend checking the IRS "Where's My Amended Return" tool online after about 3 weeks to make sure they received it. Good luck with your first year doing taxes yourselves - it gets easier once you understand the basics!
Thanks for the practical tips about the ITIN amendment! The certified mail suggestion is really smart - I wouldn't have thought about that. Quick question: when you write "ITIN RENEWAL" at the top, do you put it anywhere specific on the form or just clearly visible at the top of the first page? Also, did you have to include copies of your identity documents with the W-7, or were the originals required? I'm trying to avoid any delays in processing.
Has anybody tried the IRS Direct File beta this year? I heard they're testing a completely free filing system directly through the IRS, but I'm not sure if it handles education forms like 1098-T. Anybody have experience with it?
I tried it! It does handle 1098-T forms and education credits, but there are some limitations. It only works for pretty simple tax situations and only certain states are eligible. I qualified in Arizona and it worked great for me with my 1098-T, but if you have anything complicated it'll tell you that you're not eligible. Worth checking if you qualify though!
Just wanted to add another free option that worked well for me - FreeTaxUSA. I used it through the IRS Free File portal and it handled my 1098-T without any upgrade fees. The interface isn't as polished as TurboTax, but it walked me through the American Opportunity Credit step-by-step and I got my full refund. One tip: make sure you have your 1098-T handy because you'll need to enter the amounts manually, but it's pretty straightforward. They also have good customer support if you get stuck on the education credit calculations. Definitely worth trying if the other options don't work out for you!
Thanks for mentioning FreeTaxUSA! I was actually looking at that one too but wasn't sure if it was trustworthy. Good to know it worked well for you with the 1098-T. Quick question - did you have to create an account or provide payment info upfront, or is it truly no-strings-attached free? I'm just paranoid after TurboTax immediately wanted my credit card info even for the "free" version.
Oliver Alexander
I'm dealing with a very similar timeline to yours! Filed my original return in late January, saw the 570 code pop up in mid-February, and just got my amended return accepted about 10 days ago. Still waiting for the 971/977 codes to appear, but this thread has been incredibly educational about what to expect. What I find most helpful from reading everyone's experiences is that this seems to be a pretty standard process, even though it feels anything but standard when you're going through it for the first time. The codes look scary but they're really just the IRS's way of tracking progress through their system. I've been checking my transcript obsessively, but after reading @Freya Andersen's tip about Wednesday updates, I'm going to try to limit myself to once-weekly checks to preserve my sanity! π For anyone else in this boat - it sounds like patience is really the only option here, but at least we know we're not alone in dealing with these long processing times. The 12-20 week timeline everyone's mentioning actually seems pretty consistent across different experiences. Thanks to everyone sharing their stories - it's making this whole process much less stressful knowing what's normal!
0 coins
GalacticGuardian
β’I'm in almost the exact same situation as you! Filed my original return in early February, got the 570 code a few weeks later, and submitted my amended return just last week. Still anxiously waiting for those 971/977 codes to show up on my transcript. Reading through this entire thread has been such a relief - before finding this discussion, I was convinced something was seriously wrong with my return. Now I understand this is just how the system works, even though it feels incredibly slow and stressful when you're in the middle of it. The Wednesday checking tip is brilliant! I've been refreshing my transcript multiple times a day like it's going to magically update faster. Definitely going to try the once-weekly approach to save my sanity too. It's also reassuring to see so many people with similar timelines and experiences. Makes me feel less alone in this whole process. Thanks for sharing your story - knowing there are others going through the same thing right now really helps!
0 coins
Malik Johnson
This thread has become an amazing resource! I'm currently in week 6 since my 977 code appeared, and reading everyone's experiences here has really helped manage my expectations about the timeline. One thing I wanted to add from my research: if you're checking your transcript and see a cycle code ending in "05" (like 20240505), that typically means your return is being processed in the current cycle. If it ends in "02" or "03", it might indicate additional review time needed. Also, I've found that calling the IRS early in the morning (right when they open at 7 AM) gives you the best chance of getting through without ridiculous hold times. The agents have been pretty helpful in confirming that my return is moving through normal processing channels. For those just starting this journey - the waiting is brutal, but everyone's timeline estimates here have been pretty accurate in my experience. The 971 notice really is just bureaucratic confirmation, nothing to stress about. Hang in there! πͺ
0 coins
Connor Murphy
β’This is such valuable information! I had no idea about the cycle code patterns - that's the kind of insider knowledge that makes a huge difference when you're trying to interpret what's happening with your return. I'm going to check my transcript right now to see what my cycle code ending is. The early morning calling tip is brilliant too. I've been putting off calling because I assumed it would be hours of hold time no matter when I called. 7 AM makes perfect sense - probably fewer people thinking to call that early. Thanks for sharing your week 6 update! It's really helpful to hear from someone who's further along in the process. Even though 6 weeks sounds like forever when you're waiting, it's reassuring to know things are still progressing normally at that point. This whole thread has honestly been more informative than any official IRS resource I've found. Really appreciate everyone sharing their real-world experiences and practical tips! π
0 coins
Bethany Hillbilly
β’Iβve been going through something similar myself. Filed 1/27/25. Got a notice in the mail dated 2/14/25 saying my taxes were under review for 45 days possibly 60. I looked at my transcript a few days later and saw the dreaded 570 code which Iβd never seen before. It was dated 3/3/25 so my understanding was another notice was coming and sadly I never received any additional notices and just continued to wait constantly for an update.Β I finally called them and the IRS told me I would Either receive a letter in the mail or get a deposit around 6/28/25. Well that day came and nothing was changing. I called Again and was given the number to ACQ DEPT. so i called them. I Waited on hold forever and the person I finally Spoke to said she would send a referral. She placed me on hold and when she came back on the line disconnected so I never Got anyone again.Β Move forward to October. Still nothing but a 570. No notices online or by mail. So I realized The mistake was related to my federal withholding and i took a chance of amending them 10/31/25. Lo and behold 11/4/25 I receive a letter from the IRS that I didnβt even know was coming to me before I amended my taxes and it was asking me to agree to the changes and submit it online. I went ahead and agreed to it because what they had on the letter that they wanted to adjust matched what my amended taxes showed when I did them but I started panicking and worrying j may have delayed it longer by amending it when they couldβve just adjusted it and sent them to me.Β Everything I read stated that it was okay I amended it as long as what I amended matches what the IRS was changing but I wouldβve never amended them had a known a letter was in the way to me and I wouldβve left everything alone for them to adjust it themselves. Two days ago my AS OF DATE.changed to 11/24 and I got Excited that they were finally working on them after my AS OF DATE had said 3/24/25 for so long. Now today on 11/14/25 it says 12/1/25 instead of 11/24/25 and shows code 971 and then 977 underneath the 570 code with a date of 10/31/25. I hope they see the amended return matches what they were gonna adjust so I can Get my taxes sooner but I fear itβs gonna take even longer to get them now because of the amended return. Anyone got any tips for me? Or advice?
0 coins