Wait I'm confused about something here. Doesn't the original mortgage create complications? If the bank released the frontage lot from the mortgage, wouldn't that be considered debt relief and potentially taxable? Or does the 1031 exchange override that somehow?

This is a really helpful discussion! I'm dealing with a somewhat similar situation where I subdivided investment property for a 1031 exchange, though mine was commercial land rather than residential. One thing I learned from my tax attorney is that you should also consider whether any of your closing costs from the original purchase can be added to your basis. Things like title insurance, legal fees, and survey costs from when you bought the 26-acre parcel can often be included in your adjusted basis calculation, which would reduce your taxable gain. Also, since you mentioned fighting a tax levy - if those legal fees were related to defending your title to the property or protecting your investment, they might also be added to basis rather than treated as a current deduction. The FMV allocation method you're using sounds correct, but definitely document everything thoroughly. The IRS tends to scrutinize subdivided land transactions more closely, especially when there are significant value differences between parcels like highway frontage vs. wetlands. Good luck with Form 8824 - it's definitely one of the more complex forms to navigate!

It seems, perhaps, that there might be a possible workaround worth exploring. In some cases, the IRS Taxpayer Assistance Centers can potentially accept alternative documentation for children in lieu of the actual Social Security card. This might include a birth certificate along with medical records showing your child's SSN, or possibly school records with the SSN listed. I was, quite frankly, surprised to learn this when I faced a somewhat similar situation. You would likely need to call ahead to the specific TAC office where you plan to verify and ask if they can accommodate this exception given your circumstances. The flexibility varies significantly by location and individual IRS employee discretion.

I'm going through something very similar right now - filed in late January and have been stuck in verification limbo for weeks. What's been most helpful for me is keeping detailed records of every call, including the representative's ID number and exactly what they told me. The inconsistent information is maddening, but having those records helped when I finally reached someone who could actually see my full account status. One thing that might help while you're waiting for the Social Security card - call your local SSA office directly and ask about expedited processing due to IRS verification needs. Some offices can flag your request as urgent for tax purposes. Also, if you have any other documents with your child's SSN on them (like tax documents from previous years, insurance cards, or medical records), bring those as backup even though they might not accept them. I've heard some TAC offices are more flexible than others depending on your specific situation. The financial strain is real - I totally get it. Have you looked into whether your state has any emergency assistance programs while you're waiting? Some states offer short-term help specifically for tax refund delays.

One option nobody's mentioned yet - have you considered an Offer in Compromise? If your financial situation truly doesn't allow you to pay the full amount, even over time, you might qualify to settle the debt for less than you owe. The 433-F is actually part of that application process too.

I went through almost the exact same situation last year with an inherited 401k that created a huge tax bill. Here's what I learned from experience: The IRS will definitely scrutinize your Form 433-F carefully when the amount is over $50k, but they're not necessarily looking to reject your installment plan - they just want to make sure you're paying what you reasonably can afford each month. That said, if you have the ability to pay down to $50k first, I'd strongly recommend doing that. The streamlined installment agreement process for amounts under $50k is SO much simpler. You'll avoid the 433-F entirely, get faster approval (often automatic), and have fewer ongoing compliance requirements. One thing to consider: even if you pay down to $50k initially, you can always request to modify your payment plan later if your financial situation changes. The IRS is generally willing to work with taxpayers who are making good faith efforts to pay. Also make sure you're factoring in the setup fee for the installment agreement ($31-225 depending on how you apply and pay) and the ongoing interest/penalties. Sometimes it's worth exploring other financing options first if you have good credit.

ur good fam just gotta wait it out. banks be moving slow af with these deposits sometimes

I work in tax prep and can confirm that California FTB is usually very transparent about offsets on their status page. Since you're not seeing any offset language and the TOP hotline cleared you, you should be good to go! The 10 business day window starts from the authorization date (Feb 4), so you're still within normal timeframes. Some banks can take an extra day or two to process government deposits, especially if they do additional verification. Hang tight - your refund should hit soon!

Just wondering - does being in CNC status stop penalties and interest from accruing on the tax debt? I'm considering applying for it myself.

I went through this exact same situation about 6 months ago! Got the 433-F request after being in CNC for about 20 months. I was terrified they were going to kick me out because my freelance income had gone up slightly. Here's what I learned: The key is being thorough and honest about ALL your expenses, not just focusing on income changes. Document everything - rent, utilities, groceries, car payments, insurance, medical costs, childcare, etc. The IRS uses standard allowable living expense amounts, but they'll consider documented expenses above those standards if you can prove they're necessary. In my case, even though my income increased by about $6k annually, my rent had gone up significantly and I had new prescription costs that weren't there before. I made sure to include every receipt and explanation. They kept me in CNC status because my actual ability to pay hadn't really improved. The review process took about 6 weeks total from when I submitted the form. Don't ignore it - that's the one thing that will definitely get you kicked out of CNC. But don't panic either. If your financial situation is still legitimately tight, you'll likely be fine.