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.

I had the exact same code sequence! 571 to 971 is definitely a good sign. The 971 notice they send is usually just a formality letting you know they've completed their review. In my case, I got the 846 refund code just 5 days after the 971 appeared. Keep checking your transcript every few days - you should see movement soon! The hardest part is behind you now.

I've been through this exact same situation! The 571 to 971 transition is actually really promising - it means the IRS has lifted whatever hold was on your account and is now sending you a notice about the resolution. In most cases, this notice is just procedural paperwork confirming they've finished their review. I'd definitely start checking your transcript daily now because that 846 refund code usually shows up within 7-10 days after the 971 appears. You're in the home stretch! 🙌

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.

Question for anyone who has dealt with this - if I find I made a mistake on a previously filed return (for 2023) but haven't received any notices from the IRS yet, should I wait for them to contact me or just file an amendment now? I'm wondering if it's better to fix it proactively or wait.

I can definitely relate to your panic - I had a similar situation last year where I received my 1095-A after filing! The good news is this is absolutely fixable, and you're not alone in this predicament. First, don't stress too much about the timing. You have up to 3 years to file an amended return, so you're not under any immediate deadline pressure. The two different 1095-A forms you received likely indicate either a correction was made to your original form, or you had some kind of coverage change during 2024 (like switching plans mid-year, adding/removing family members, or moving to a different area). Here's what I'd recommend doing: 1. Look carefully at both forms - one might be marked as "corrected" or have different effective dates 2. Call your marketplace (the phone number should be on the forms) to clarify which form is the correct one to use 3. Once you know which form to use, file Form 1040-X to amend your return 4. Include Form 8962 (Premium Tax Credit) with your amendment The key thing is that the IRS already has this information from your insurance company, so it's much better to proactively fix this than wait for them to send you a notice asking about the discrepancy. You've got this!