Call the IRS ASAP! Don't wait around tbh

This is totally normal during this time of year! I went through the exact same thing last month - blank transcripts and WMR errors. The IRS does major system updates in January which causes these temporary blackouts. Your info should come back online by late January/early February. In the meantime, don't stress - this doesn't mean there's anything wrong with your return. The system just can't display your info while they're doing maintenance. I know it's frustrating when you're waiting on that refund money, but hang in there! 💪

Congrats ur almost there! EIC gang we outchea getting paid 💅

Code 571 means they lifted any previous hold on your return, and 846 is definitely your refund release date! February 14th should be when it hits your account (or within 1-2 business days). The transcript is way more reliable than WMR - I've seen people get their money while WMR still shows "processing" for weeks. You're in the home stretch! 🎉

Has anyone tried handling this through tax software? I had a similar 1099-R situation last year and TurboTax kept wanting to tax the distribution even though it shouldn't have been taxable.

I went through almost the exact same situation last year with a 1099-R Code E from my 401k plan. The IRS sent me a notice saying I owed taxes on what was clearly a return of my after-tax contributions. What worked for me was calling my 401k plan administrator first to get written documentation that these were indeed excess after-tax contributions being returned. They provided a letter explaining the distribution and confirming that Box 5 represented my cost basis (money I'd already paid taxes on). I then sent this documentation to the IRS along with a letter explaining that this was a non-taxable return of basis. The key is being very clear that Box 1 and Box 5 being equal means the entire amount represents already-taxed contributions. It took about 8 weeks, but the IRS eventually agreed and removed the tax liability. Don't panic - this is definitely a common misunderstanding on their automated system's part. Just make sure you have good documentation from your plan administrator to back up your position.

check your bank account daily starting next week. Mine hit without the 846 code even showing up lol

Same thing happened to me last year! The 971 code usually means they're sending you a CP05 notice which is just a "we need more time" letter. But when it follows a 571 code like yours, it's actually good news - means they resolved whatever was holding up your return. I'd expect to see that 846 refund code within the next 1-2 cycles. The waiting is torture but you're almost there!

I'd actually been handling this wrong on my returns for years until my return was audited in 2023. The IRS was very clear: each tier maintains its own character. My CPA had to prepare a detailed analysis for each entity where I claimed material participation. For partnerships where I was just a limited investor (even though they were held by my materially-participating HoldCo), the income remained passive. The IRS agent specifically referenced Reg 1.469-2(f) and said HoldCo's active management doesn't "cleanse" the passive character of the income from lower tiers.

This is exactly the type of complex flow-through situation that trips up many taxpayers. The consensus here is correct - your material participation in HoldCo doesn't convert the passive income from the underlying entities where you're a limited partner. I'd recommend keeping detailed records of your participation hours for each entity separately, since the IRS will look at material participation on an activity-by-activity basis. Also consider whether you might benefit from grouping elections under Reg 1.469-4 if you have multiple similar activities, but this requires careful planning and proper elections. One thing to watch out for: make sure your K-1s from HoldCo properly reflect the passive/nonpassive character of the income as it flows through. Sometimes holding entities don't correctly maintain the character codes, which can create issues if you're ever audited.