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Has anyone else noticed that ALL the tax sites seem to crash more often nowadays? I remember when you could file without all these technical glitches. Last year TaxAct kept logging me out mid-session and I lost data twice. This year I'm trying Free Tax USA and having similar issues.
I think it's because more people are filing online now than ever before. The systems weren't built to handle this much traffic. I've found that filing in February is much smoother than waiting until March or April when everyone rushes to get it done.
I experienced something similar with Free Tax USA last month! The site was completely unresponsive for about 2 days, but everything was still processing normally on their end. What really helped me was calling their support line at 1-800-585-1040 early in the morning (around 7 AM) when wait times were shorter. The customer service rep was able to confirm my payment schedule and even sent me a new email confirmation while I was on the phone. They explained that when their website goes down, it's usually just the front-end interface - all the backend payment processing and IRS submissions continue to work normally. Also, if you're really stressed about the payment timing, you can always make a manual payment directly to the IRS using their Direct Pay system as a backup. That way you know for certain your payment went through, and if Free Tax USA's automatic payment also processes, the IRS will just send you a refund for the overpayment.
This PATH act got me ready to throw hands with the IRS fr fr π
Filed 1/28 with TurboTax, EIC claimed, using Credit Karma for deposit. Transcript updated yesterday showing cycle code 20250310 but still no DDD. Anyone else seeing similar timeline? This wait is killing me but at least we're all suffering together π
Small tip: After you get this issue resolved, I HIGHLY recommend setting up direct deposit info in your IRS account at https://www.irs.gov/payments/your-online-account rather than leaving it to tax preparers each year. This keeps your bank info consistent regardless of who prepares your taxes. It also lets you check transcripts online to see exactly what's happening with your refund - including rejected direct deposits - without waiting for customer service.
Thank you all so much for the advice! I checked my old savings account and there's no deposit there, so it definitely went to a completely wrong account. I'm going to try both taxr.ai and Claimyr to get this sorted out. Also definitely setting up that IRS account for next year - I had no idea that was an option!
I went through this exact same nightmare last year! My preparer switched two digits in my account number and my $2,400 refund went into the void. Here's what I learned: First, don't wait - contact your preparer immediately and demand they fix this. Most professional preparers carry errors and omissions insurance specifically for mistakes like this. Mine initially tried to brush me off saying "it happens," but when I mentioned their insurance should cover the costs of their mistake, they suddenly became very helpful. Second, file Form 8379 if you're married filing jointly and only one spouse has the banking error - this can help separate your portion of the refund for reprocessing. The good news is that if the account doesn't exist or belongs to someone else, banks are required to return erroneous deposits within a reasonable timeframe. The bad news is "reasonable" can mean anywhere from 3 days to 3 weeks depending on the bank. Document everything - keep records of all calls, emails with your preparer, and IRS correspondence. If this drags on, you may need this for a complaint with your state's board of accountancy if your preparer is licensed. Most importantly, this WILL get resolved. It's frustrating and scary, but the IRS deals with these situations regularly and has processes in place. You're not going to lose your refund permanently.
Has anyone actually heard of the IRS penalizing someone for filing Form 8865 with incorrect dates? I'm in a similar situation with a UK partnership (April-March fiscal year) and have been reporting the fiscal year that STARTS in my tax year rather than ENDS. Now I'm worried I've been doing it wrong for 3 years! Do I need to file amended returns? Or just fix it going forward? The difference is substantial because we had a major property sale in April 2023 that I reported on my 2023 taxes, but now I'm thinking it should have been on my 2024 return instead!
You should definitely file amended returns. The IRS is increasingly focused on international reporting, and Form 8865 errors can trigger penalties of $10,000+ per form. I'd recommend working with a tax professional who specializes in international taxation to get your prior years corrected. The property sale being reported in the wrong year is particularly concerning since that's a significant event that could draw attention. Better to fix it voluntarily before they come knocking!
Thanks for the reality check. I didn't realize the penalties could be that severe! I'll look into finding a specialist to help with the amended returns. This whole form is so needlessly complicated compared to domestic partnership reporting.
I feel your frustration with Form 8865 - it's one of the most confusing forms the IRS has ever created! I've been dealing with this exact issue for my Canadian partnership (January-December fiscal year) and can confirm what others have said. For your May-to-May partnership, you're absolutely correct to report the fiscal year that ENDS within your 2025 tax year (May 2024 to May 2025). The pre-printed "2025" on the form is indeed referring to YOUR tax year, not the partnership's beginning date. It's terrible form design that confuses everyone. Regarding the IRS refusing to answer questions - this is unfortunately common with international forms. They consider Form 8865 "specialty" and most phone representatives aren't trained on it. I've had success calling early in the morning (8 AM EST) and specifically asking to be transferred to the International Tax division, though it can take multiple attempts. One additional tip: make sure you're also checking if you need to file Form 8865 for multiple categories. Some people need to file as both Category 1 (10% owner) AND Category 2 (ownership change) in the same year, which requires separate forms with different reporting periods. The instructions don't make this clear at all. The Form 8825 question has been answered correctly by others - report the ENTIRE partnership's rental income, not just your distributive share. Your actual share flows through elsewhere on your return.
Thank you for the comprehensive explanation! The multiple category filing requirement is something I hadn't even considered - that's terrifying to think I might need separate forms. How do you determine if you fall into multiple categories? And do you have any tips for actually getting through to the International Tax division? I've tried calling several times but keep getting transferred around in circles. Also, has anyone found a reliable way to double-check if you're completing Form 8865 correctly before filing? I'm paranoid about making mistakes given all the penalty warnings in this thread!
Zadie Patel
If you're really stuck, you can also log back into your H&R Block account and look at the actual depreciation schedule they created last year. Sometimes it's easier to see it there than on the actual tax forms. Go to your account, look at last year's return, and there should be a section for "Depreciation Worksheets" or something similar that shows a breakdown year by year. Just FYI - I found FreeTaxUSA's rental property section to be pretty good once you get past this initial hurdle of entering the prior year stuff. Much more straightforward than H&R Block in many ways!
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Maya Lewis
I switched from TurboTax to FreeTaxUSA last year and ran into the exact same issue with my rental property! One thing that helped me was to look at the actual depreciation worksheet that H&R Block generated, not just the forms. When you log into your H&R Block account, there should be a detailed depreciation schedule that shows the breakdown year by year - this made it crystal clear what the cumulative amount was. Also, double-check that you're looking at the right property if you have multiple rentals. I almost entered the wrong depreciation amount because I was looking at the wrong property's line on my Schedule E. The Form 4562 Box 22 that others mentioned is definitely the right place to look for the cumulative prior-year depreciation amount. FreeTaxUSA's interface for rental properties is actually pretty intuitive once you get past this initial setup. Good luck with the switch - you'll definitely save money compared to H&R Block's fees!
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