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For the 2025 filing season, if anyone wants to avoid these issues in the future, file as early as possible! I filed the first week returns were accepted and had my refund in 8 days without ever seeing any weird codes. The longer you wait, the more backlogged the IRS gets, and the more likely you are to see delays even without any problems on your return.
This is actually not true. I filed on literally the first day and still got the Tax Topic 152 message. My refund took 25 days. Filing early doesn't guarantee fast processing.
@Caleb Stone is right - filing early doesn t'guarantee anything. I think what really matters more is how complex your return is. Simple returns with just W2s and standard deduction seem to go through faster regardless of when you file. But if you have things like business income, education credits, or certain deductions, those returns get flagged for additional review no matter when you submit them. The IRS computer systems look for specific combinations of forms and credits that trigger manual checks, not filing dates.
I went through this exact same panic last year! Tax Topic 152 is basically the IRS's way of saying "we're working on it" - it's not a red flag at all. Since you filed through TurboTax 3 weeks ago, you're still well within the normal processing window. The IRS has been pretty backed up this season, so even straightforward returns are taking closer to 3-4 weeks instead of the usual 21 days. I'd only start getting concerned if you hit the 6-week mark without any status updates. Keep checking "Where's My Refund" every few days, but try not to obsess over it (easier said than done, I know!). The good news is that Tax Topic 152 almost always means your refund is coming - it's just a matter of when, not if.
Don't some people create LLCs or S-Corps specifically to write off stuff though? I know a guy who has a "consulting business" but seems to write off his car, travel, meals, etc., and I'm pretty sure he only has like 2 clients a year. Is that legal?
The business entity (LLC, S-Corp, etc.) doesn't matter if the underlying activity doesn't qualify as a legitimate business. Creating an LLC doesn't magically make personal expenses deductible. Your friend is playing with fire. The "consulting business" is one of the most audited types because it's commonly abused exactly as you described. If audited, he'd need to prove those expenses were ordinary and necessary for his specific consulting work. The IRS will look at the ratio of deductions to income - if he's writing off $30K in expenses to generate $5K in consulting income, that's a massive red flag.
The IRS has gotten much more sophisticated with data analytics in recent years. They use algorithms to identify patterns that suggest tax fraud, including businesses that consistently show losses while claiming large deductions against W-2 income. One thing people don't realize is that the IRS cross-references data from multiple sources. If you claim a "travel consulting business" and write off vacations, but they see no business income reported, no business bank account activity, no marketing expenses, no client communications, etc., it paints a clear picture. They also look at lifestyle vs. reported income. If someone making $50K W-2 income is writing off $20K in "business" expenses for luxury items but shows no corresponding business revenue or growth trajectory, that's an obvious audit trigger. The key is that legitimate businesses leave paper trails everywhere - bank statements, client contracts, invoices, marketing materials, business licenses, professional development, etc. Fake businesses created just for tax avoidance lack this ecosystem of supporting documentation. Beyond audits, the IRS can also impose accuracy-related penalties (20% of underpaid tax) or fraud penalties (75% of underpaid tax) plus interest. The risk-reward math just doesn't work out for these schemes.
This is really eye-opening about how sophisticated the IRS has become with detecting fake businesses. I had no idea they were using algorithms to cross-reference all that data. It makes me wonder though - for someone like me who's thinking about starting a legitimate side business, how can I make sure I'm setting it up correctly from the beginning to avoid accidentally triggering these red flags? Like, should I open a separate business bank account right away even if I'm not making much money initially?
Just wanted to chime in that the IRS online account only shows the last few years - completely normal. Had a similar panic when I could only see back to 2020. For peace of mind until you can call, check if you have any old tax prep software files on your computer. Sometimes they save copies of previous returns. Also, check your email - if your ex e-filed, there might be confirmation emails from TurboTax or whatever software you used.
I went through almost the exact same situation after my divorce two years ago! The stress of not knowing what was actually filed is horrible, but you're taking the right steps. A few things that helped me piece together my tax history: 1. Check if you have any old copies of tax software on shared computers - I found TurboTax files going back years that my ex had saved locally 2. Look through old bank statements for IRS refund deposits or payments - this can confirm which years returns were actually filed 3. If you have old pay stubs, compare your year-end totals to what should have been reported - this helped me spot a year where income wasn't properly reported The most important thing is getting those transcripts from the IRS to see your official filing history. Don't stress too much about the online account only showing recent years - that's completely normal. For your 2022 return, you can still e-file without the prior year AGI by using the PIN option or indicating you didn't file the previous year. The IRS will process it and you can sort out any discrepancies later. You've got this! It's overwhelming now but once you have the facts from the IRS, you'll know exactly what needs to be fixed.
This is such helpful advice! I'm dealing with a similar situation and hadn't thought about checking old computer files. Question though - if I find TurboTax files on the computer, does that definitively mean the returns were actually submitted to the IRS? Or could they just be saved drafts that were never filed? I'm worried I might think everything's fine when maybe the returns were prepared but never actually sent.
I work in payroll and see this type of error more often than you'd think! Code T for adoption benefits is definitely something that stands out on a 68-year-old's W-2. The good news is that most employers are pretty responsive to these kinds of obvious mistakes once you point them out. When you contact HR/payroll, be specific about what you're seeing - mention the exact code (T), the amount ($4,300), and that it doesn't apply to your father's situation. Ask them to check what the correct code should be for that amount. As others mentioned, it's likely a retirement contribution that got miscoded. One tip: if you're having trouble reaching the right person at his company, try calling first thing in the morning or right after lunch. Payroll departments are usually swamped at certain times but more available during those windows. Also, get the name and direct contact info of whoever helps you in case you need to follow up. Don't file without the corrected W-2 - trust me, the headaches from IRS notices later aren't worth trying to save a few weeks now.
Thank you so much for this advice! I really appreciate hearing from someone who works directly with payroll systems. The timing tip about when to call is super helpful - I was planning to call tomorrow but wasn't sure what time would be best. I'll definitely try first thing in the morning. You're absolutely right that it's probably a retirement contribution that got miscoded. Looking at it that way, the $4,300 amount makes perfect sense for my dad's situation. I'll make sure to be very specific when I contact his HR department about the exact code and amount. Thanks for reinforcing that we shouldn't file without the corrected W-2. Even though waiting is frustrating, I definitely don't want to deal with IRS notices later!
Just wanted to add my experience here - I had a similar W-2 error last year where my employer accidentally coded my health savings account contributions as something else entirely. Like everyone's saying, definitely don't try to fix it yourself or file with the error. One thing that really helped speed up the process was when I called HR, I had all my paystubs from the year ready. I could show them exactly what the correct amount should be and where it appeared on my stubs versus what was wrong on the W-2. This made it super easy for them to see the mistake and know exactly what to fix. Also, if your dad's company uses a payroll service like ADP or Paychex instead of doing payroll in-house, the HR person might need to contact them to get the corrected form issued. Just be patient if they say it might take an extra few days because of that - it's pretty normal. The corrected W-2 will be worth the wait to avoid any issues with the IRS later!
Lucy Taylor
PSA: If your transcript is blank, make sure you're looking at 2023 and not 2024! I made that mistake lol š
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Jessica Nguyen
ā¢omg... let me check... nope definitely 2023 and still blank š
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Anastasia Kozlov
I feel your pain! The "RETURN NOT PRESENT" message is terrifying but totally normal this early in tax season. I was in the exact same situation last month - completely blank transcript for almost 3 weeks after filing. The IRS is just super backed up right now. Your return is definitely in their system, it's just sitting in a queue waiting to be processed. I'd check WMR too but don't stress if that's also showing "still processing" - transcripts are usually more reliable once they do update. Hang in there! šŖ
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