This is a textbook case of tax identity theft that needs immediate attention. The timeline you've described - with a "wrong identifying number" notice from December 2023 followed by a refund freeze in February 2024 before you even filed - clearly indicates someone used your SSN to file a fraudulent return. The 290 code showing just a "$" symbol without an amount suggests the IRS system is struggling to calculate what you actually owe because it's trying to reconcile your legitimate returns with the fraudulent one already in the system. Here's your action plan: 1. Call the IRS Identity Protection Unit at 800-908-4490 TODAY - don't wait for any notices 2. File Form 14039 (Identity Theft Affidavit) immediately 3. Contact all three credit bureaus to place fraud alerts and check your credit reports 4. Consider freezing your credit entirely until this resolves 5. Keep detailed records of everything The multiple amendments you filed likely complicated things further because now the system has to sort through several legitimate returns plus the fraudulent one. This will take months to resolve, but acting quickly is crucial. Once the IRS confirms identity theft, they typically expedite processing of your legitimate refund, but the sooner you start this process, the better. Don't file your 2025 return until you speak with the identity theft unit about whether you'll need an IP PIN or special procedures going forward.

This is definitely a complex identity theft situation that requires immediate action. The sequence of events - December 2023 "wrong identifying number" notice, February 2024 refund freeze before you filed, and now a 290 code with no amount - all point to someone having filed a fraudulent return using your SSN. The 290 code typically shows "additional tax assessed" with a specific dollar amount, but yours showing just "$" suggests the system can't properly calculate what you owe because it's trying to reconcile your legitimate returns with the fraudulent one already in the system. Here's what you need to do immediately: 1. Call the IRS Identity Protection Specialized Unit at 800-908-4490 - don't wait for notices 2. File Form 14039 (Identity Theft Affidavit) right away 3. Place fraud alerts with all three credit bureaus and check your free credit reports 4. Consider freezing your credit entirely until this resolves 5. Request a complete account transcript to see all activity on your SSN Your multiple amendments likely complicated the situation further since the system now has to sort through several legitimate returns plus the fraudulent one. This will take months to resolve, but starting the identity theft process immediately is crucial. Once confirmed, the IRS typically expedites legitimate refunds. Also, don't file your 2025 return until you speak with the identity theft unit about whether you'll need an IP PIN or special filing procedures going forward. Document everything and keep detailed records - these cases require a lot of follow-up.

I went through almost the exact same situation last year - depreciation correction from 39-year to 27.5-year schedule on rental property improvements. The $1,200 fee is definitely steep, but honestly it was worth it for me. What really helped was getting multiple quotes. I ended up finding a CPA who specialized in Form 3115 filings and only charged $850. The key is finding someone who does these regularly - they have templates and processes that make it much more efficient than a generalist who might be starting from scratch. One thing to consider: make sure your current CPA is experienced with 3115s specifically. I initially went with my regular tax preparer who quoted $1,400 and admitted she'd only done "a few" of these forms. Ended up switching to someone who does dozens per year and got better service for less money. Also, don't forget that the professional fee is likely deductible as a tax preparation expense. So your actual out-of-pocket cost is reduced by your marginal tax rate. In my case, the $850 fee only cost me about $640 after tax savings. The refund took about 5 months to arrive, but it was exactly what we calculated. Worth the wait and the professional fee!

I've been through this exact scenario with a rental property depreciation correction, and I can share some practical insights. The $1,200 fee, while painful, is actually reasonable for Form 3115 work - I've seen quotes as high as $1,800 for similar corrections. Here's what I learned: The form itself isn't just complex, it's also high-stakes. One mistake in the 481(a) adjustment calculation can trigger correspondence that delays your refund by months. The IRS is particularly strict about the supporting documentation - they want to see detailed schedules showing every year of depreciation under both the old and new methods. For your situation (39-year to 27.5-year), this is one of the most common corrections, which works in your favor. The IRS sees these regularly and knows what to look for. However, they also know exactly what documentation should be included, so there's no room for shortcuts. My advice: Get at least two more quotes, specifically from CPAs who mention Form 3115 experience on their websites or marketing materials. Ask each one how many 3115s they file per year - you want someone who does at least 10-15 annually. Also ask them to break down exactly what supporting schedules they'll include with the filing. The refund timeline is unpredictable, but most of my research suggested 4-6 months is typical once properly filed. The peace of mind of having it done correctly the first time is worth the professional fee, especially since you'll continue benefiting from the corrected depreciation going forward.

have u tried setting up a payment plan for the 2018 balance? might help

I had this exact same issue last year! The Treasury Offset line is notoriously unreliable - it often shows no debt even when you actually owe money. Your transcript is definitely the more accurate source. If it shows a 2018 balance, there's a good chance they'll take part or all of your refund to pay it off. I'd suggest calling the IRS directly (not the offset line) to get the real story and see if you can work out a payment plan before they automatically take your refund. The wait times are brutal but at least you'll get accurate info.

Watch out for the "recapture" if you ever sell! I learned this the hard way. All that depreciation you take on the rental portion gets "recaptured" and taxed when you sell. The current recapture tax rate is 25% (different from regular capital gains rates). I sold my duplex last year after owning it for 10 years and got hit with a huge tax bill because I hadn't planned for this.

One thing to keep in mind is that you'll need to keep really detailed records from day one. The IRS expects you to be able to prove your allocation method and track all expenses separately. I'd recommend setting up a separate bank account for all duplex-related expenses and keeping receipts for everything - even small repairs that might only affect one unit. Also, don't forget about utilities! If you pay for shared utilities like water/sewer or trash pickup, those get allocated between personal and rental portions too. Same goes for maintenance expenses - if you hire someone to maintain the whole property (like lawn care), that gets split, but if you fix something specific to just the rental unit, that's 100% deductible against rental income. Your accountant will definitely help you set up the right systems, but getting organized early will save you headaches at tax time!

Something nobody's mentioned - make sure you look into Sweden's "183-day rule" for tax residency. If you're there more than 183 days in a calendar year, Sweden will consider you a tax resident regardless of your intentions. Also, keep very detailed records of your entry/exit dates, housing arrangements, and maintain copies of your study program documentation. The IRS loves to challenge Foreign Earned Income Exclusion claims and good documentation will save you headaches.

One thing to keep in mind is that even if you can't use Form 673 right away, you might still be able to get a refund later when you file your tax return. The withholding from your paychecks early in the year (before you qualify for the Foreign Earned Income Exclusion) would be treated as prepayments toward your tax liability. When you file your 2025 return and claim the FEIE for the portion of the year you qualify, any excess withholding would be refunded to you. It's not ideal from a cash flow perspective, but it means you won't lose that money permanently. Also, since you're going to be a student in Sweden, make sure to look into whether any of your income might qualify for different treatment under the tax treaty's student provisions. Sometimes student income has special rules that might affect your overall tax situation.