Has anyone used TurboTax for reporting crypto with all these fee adjustments? Their crypto section confused me last year.

I had the exact same confusion about bitcoin trading fees last year! After going through this myself, I can confirm what others have said - these fees definitely adjust your capital gains but aren't separate deductions. What really helped me was creating a simple spreadsheet to track everything. For each bitcoin sale, I had columns for: original purchase price, purchase fees, sale price, sale fees, and adjusted gain/loss. The formula was basically: (Sale Price - Sale Fees) - (Purchase Price + Purchase Fees) = Actual Gain/Loss. So for your $1,275 in fees, make sure you're adding purchase fees to your cost basis and subtracting sale fees from your proceeds before calculating gains. This will naturally reduce your taxable gains without needing to claim them as a separate deduction anywhere. Keep all your exchange statements showing these fees - the IRS loves documentation for crypto transactions. Good luck with your filing!

Anyone else think its sus that the IRS can make mistakes that cost us money, but if we make a mistake we get hit with penalties? 🤔 Make it make sense

This is such a frustrating situation! I went through something similar a few years ago. The key thing to remember is that CP503 notices are often generated automatically by their system, and it can take time for amended returns to be reflected in their records. First, check if you have a copy of your certified mail receipt or delivery confirmation from when you sent the amended return - this will be helpful when you call them. When you do get through to someone (and yes, the wait times are brutal), ask them to put a hold on your account while they research the amended return. Also, if you paid the correct amount with your amended return, make sure you have proof of that payment handy. Sometimes they need to manually adjust their records to show both the amended return AND the payment were received and processed. Don't panic - this happens more often than you'd think, especially during busy tax seasons. Just stay organized with your paperwork and be persistent with following up. You've got this! 💪

Thanks everyone for all the helpful advice! I called SoFi/Apex this morning using the number Freya shared (855-774-7634) and surprisingly got through in about 20 minutes. The rep was able to pull up my account and immediately saw the discrepancy I was talking about. Turns out it was actually a system error on their end where some dividend reinvestments from Q4 were double-counted in the qualified dividend total. They've escalated it to their tax document team and said I should expect a corrected 1099 within 7-10 business days via email and mail. The rep also mentioned they've had quite a few similar cases this tax season, so it seems like this might be a broader issue with their system. Really glad I caught this before filing! Will update once I receive the corrected form.

This is such a helpful thread! I'm dealing with a similar situation with my Schwab 1099-B where the cost basis looks completely wrong on some of my stock sales. Reading through everyone's experiences here gives me confidence that these errors can actually be resolved. I'm definitely going to try that taxr.ai tool that AstroAdventurer mentioned to help document the discrepancies before I call Schwab. Having a professional report seems like it would make the conversation so much smoother than trying to explain everything over the phone. Also really appreciate Sergio sharing that direct phone number and the update about the double-counting error - it's good to know these financial institutions are aware they're having system issues this tax season and are equipped to handle corrections efficiently.

have you tried accessing your account online at irs.gov? sometimes there's info there that doesn't show up on the transcript or wheres my refund. might be worth a try

I'm going through almost the exact same situation right now! Filed in January with EIC and have been stuck with codes 570 and 810 for months. It's so frustrating not knowing what's happening or when it will resolve. From what I've learned lurking in these forums, it seems like the IRS is really cracking down on EIC claims this year, especially with self-employment income. The combination of your high withholding amount compared to your final income plus the substantial EIC is probably what triggered the review. I know it doesn't help much, but you're definitely not alone in this. I've been checking my transcript obsessively every Friday when it updates, hoping to see that magical 571 code show up. The waiting game is absolutely brutal when you need the money for important things like medical bills. Have you considered reaching out to your local Taxpayer Advocate office? I've heard they can sometimes help expedite cases when there's financial hardship involved. Might be worth a shot given your medical situation. Hang in there - from everything I've read, most of these eventually do resolve, it just takes way longer than anyone wants to wait. 😔

I think everyone is overthinking this. If your LLC remained active (you paid the fees, maintained registration, etc.) then it was never "started up" again - it was just continuing. Section 162 expenses are for ongoing businesses. Section 195 startup costs are for brand NEW businesses or completely new activities that are totally different from what you did before. The fact that you had a dormant period doesn't magically turn regular business expenses into startup costs.

Just wanted to share another perspective on this since I've dealt with IRS audits on business continuity issues. The key factor the IRS looks at is whether you had "regular and continuous" business activity, not whether you had revenue. In your case, maintaining business licenses, keeping a website active, and being ready to respond to business opportunities demonstrates continuity of operations. The IRS Revenue Ruling 58-112 specifically addresses this - a temporary cessation of business activity doesn't convert regular business expenses into startup costs as long as the business entity remains active and you maintain the intent to continue operations. Your Section 162 treatment was absolutely correct. I've seen taxpayers get into trouble when they incorrectly reclassify continuing business expenses as startup costs during audits, because it raises red flags about whether they understand their own business structure. Stick with what you filed - you're on solid ground here.