Ughhh dealing with BOFA and the IRS is pure hell. I ended up having to get my congressman's office involved after 3 months of getting nowhere with my missing refund. If you're really stuck, seriously consider contacting your rep - they have caseworkers who deal with this stuff all the time and can cut through the red tape.

I'm sorry you're dealing with this frustrating situation! I went through something very similar last year. The confusion comes from the terminology - you don't actually need Bank of America to give you a "trace number." What you need is for the IRS to initiate a payment trace on their end. Here's what worked for me: First, make sure it's been at least 5 business days since the IRS says your refund was deposited. Then you have two options: 1. File Form 3911 (Taxpayer Statement Regarding Refund) with the IRS - you can download it from their website 2. Call the IRS directly at 800-829-1040 to request a payment trace When you contact the IRS, they'll handle reaching out to Bank of America through the proper banking channels. The bank doesn't provide trace numbers directly to customers - it's all handled between the IRS and the bank's ACH department. Before you do anything though, double-check the account and routing numbers you used on your tax return against your actual bank account info. A lot of times these issues happen because of a simple typo in the account number. Hope this helps and you get your refund sorted out soon!

You're definitely on the right track with understanding that you only owe taxes on your actual profit, not the gross amount shown on the 1099-K! This is one of the most confusing aspects of eBay selling taxes. Since you received a 1099-K showing $8,300, you'll need to report this on your tax return (most likely Schedule C), but then you get to subtract all your legitimate business expenses. Your actual taxable income will be that $5,200 profit you calculated. Make sure you're capturing all possible deductions: eBay final value fees, PayPal/payment processing fees, shipping costs, packaging materials, and most importantly - the cost of goods sold (what you originally paid for the items you sold). Even if you don't have receipts for everything, you can make reasonable estimates for older items. One thing to keep in mind - since you're buying items specifically to resell, this likely qualifies as business activity rather than just casual personal sales. This actually works in your favor because you can deduct more expenses as a business. The $600 reporting threshold is indeed the current rule, so you'll get a 1099-K, but remember that just means eBay had to report your gross sales to the IRS - it doesn't change the fact that you only pay taxes on net profit after expenses. Keep detailed records going forward - it'll make next year much easier!

This is such a helpful thread! I'm dealing with a similar situation where I received my first 1099-K from eBay this year and was totally caught off guard. One thing I haven't seen mentioned yet - what about state taxes? I live in California and I'm wondering if the same rules apply at the state level, or if there are different thresholds and reporting requirements I need to be aware of? Also, for anyone who's been through an audit or IRS inquiry related to eBay sales - what kind of documentation did they ask for? I want to make sure I'm keeping the right records now rather than scrambling later if they ever question anything. Reading through everyone's experiences here has been way more helpful than trying to navigate the IRS website on my own. Thanks for sharing your real-world insights!

TaxSlayer isn't the problem. The IRS is just swamped right now. I'm a tax preparer and clients who filed in January with simple returns are getting paid, but anyone with credits or who filed after Feb 1st is seeing delays across ALL software platforms. Be patient, it'll come!

Filed with TaxSlayer on Feb 5th and still waiting too! I have EIC and ACTC on my return, so sounds like we're all in the same boat with those credits causing delays. My transcript updated yesterday with a 971 notice date but no deposit date yet. At least knowing it's normal processing and not an error makes me feel better. Hang in there - seems like March is when most of us with credits will see movement!

I was in your exact situation last year. Make sure you're documenting EVERYTHING about your family business! The distinction between a legitimate business that employs a nanny vs a tax shelter specifically created to deduct personal expenses is crucial. Some things that helped me: - Maintain separate bank accounts for business operations - Have formal employment contracts - Document specific business-related duties of the nanny (vs childcare duties) - Keep detailed timesheets separating business support vs childcare hours - Have a business with genuine income/clients beyond just you and your spouse The IRS scrutinizes these arrangements closely because so many people try to game the system. Better to be conservative with deductions than risk an audit.

One thing that hasn't been mentioned yet - consider whether your family business structure is optimal for your situation. If you're running a consulting practice, you might want to explore whether an S-Corp election could provide additional tax benefits. With an S-Corp, you'd pay yourselves reasonable salaries as employees, which could potentially allow for legitimate business deductions related to employee benefits and workplace support services. However, this is definitely territory where you need professional guidance. Also, make sure you're not missing out on the home office deduction if you're running your consulting business from home. While you can't directly deduct childcare as a business expense, having a properly documented home office can create legitimate business deductions that indirectly help offset your overall tax burden. The key is building a comprehensive tax strategy rather than focusing solely on the childcare deduction angle. Sometimes the best approach is maximizing all available legitimate deductions rather than trying to force one specific expense category.

I just wanted to add that when you file next year, you might want to attach a cover letter explaining the situation along with copies of both the CP565 and CP567, plus a printout of your transcript showing the return was processed successfully. This creates a paper trail that will help if anyone questions the ITIN validity in the future. Also, keep in mind that ITINs expire if not used on a tax return for three consecutive years. So make sure to use it consistently, even if you're filing separate returns in some years. I've seen this exact issue at least 5 times with clients - contradiction between approval and rejection. In every case, when the return was processed with the ITIN, that trumped any rejection notice. The IRS systems just don't communicate well between departments.

I'm dealing with a very similar situation right now! My husband (also a nonresident alien) got his ITIN approved in May, we filed our return and got our refund processed, then got a rejection notice in June. Reading through all these responses has been so helpful. I checked our transcript online like several people suggested and it clearly shows our return was processed with his ITIN. That seems to be the key evidence that everything is actually fine despite the confusing rejection notice. One thing I learned from our tax preparer is that these contradictory notices are becoming more common as the IRS updates their computer systems. The different departments don't always sync up in real time, which creates these weird situations where you get approved then rejected (or sometimes the reverse). For anyone else in this boat - definitely keep both notices and check your transcript. If your return was processed and refund issued, you're almost certainly good to go. The processing system is what actually matters, not the automated notices.