Miranda, I'm so glad you caught this in time! I went through almost the exact same situation with my father-in-law two years ago. He had signed with a company called "Tax Resolution Pro" and they were about to withdraw $9,800 from his account. Here's what we did that worked: We called them immediately and said "We are exercising our right to cancel under the 3-day rescission period as outlined in section [X] of the contract dated [date]." Be very specific about referencing the contract language. We also contacted his bank simultaneously to put a stop payment on any pending ACH transactions from that company. The key thing is to be persistent but polite. These companies will often try to talk you out of canceling by saying things like "you'll lose this special rate" or "your case will be harder to resolve later." Don't fall for it. The IRS programs aren't going anywhere, and you don't need to pay thousands to access them. After we canceled, we helped him set up a payment plan directly with the IRS online. It took about 20 minutes and cost $31 instead of nearly $10,000. He's been making his monthly payments for two years now with no issues. Document everything you do today - take screenshots of emails, save voicemails, keep records of who you spoke with and when. This paper trail will protect you if they try to claim the cancellation wasn't properly submitted. You're being a great advocate for your mom. Don't let them make you feel bad about canceling - you're absolutely doing the right thing.

Miranda, I'm so sorry your family is dealing with this stress! As someone who works in elder financial protection, I see these predatory tax resolution companies targeting vulnerable seniors all the time. The good news is you still have options even on the third day. Here's exactly what to do RIGHT NOW: 1) Call American Tax Services immediately - don't wait another hour. Say: "I am exercising my right to cancel this contract under the 3-day rescission period per the contract dated [insert date]. This cancellation is effective immediately." 2) While on that call, send an email to them with the same cancellation language. Get a read receipt if possible. 3) Contact your mom's bank ASAP to stop any pending ACH/electronic payments from American Tax Services. Most banks can place a stop payment immediately over the phone. 4) Send a certified letter today with the same cancellation notice - go to the post office before they close. Don't let them guilt trip you or use scare tactics about "losing your chance" or "making things harder with the IRS." These are manipulation tactics. The IRS has consistent programs available year-round, and working directly with them is always better than paying these inflated fees. Once you've canceled, the IRS Fresh Start program has several options for your mom including payment plans, hardship deferrals, and potentially reducing the total amount owed if she qualifies. You've got this - stay strong and don't let them intimidate you!

This has been such an enlightening discussion! I'm a newer tax professional (about 2 years in practice) and have been wondering if I should be incorporating AI tools into my workflow. The experiences shared here really help put things in perspective. What I find most reassuring is that everyone emphasizes AI as a starting point rather than a final answer. Coming from a generation that grew up with technology, I think there's sometimes pressure to either fully embrace new tech or completely avoid it - but the nuanced approach described here makes so much more sense. @Romeo Barrett's point about AI potentially enhancing learning rather than creating dependence is particularly encouraging. As someone still building my expertise, I worry about becoming too reliant on tools that might prevent me from developing strong foundational knowledge. But the idea that AI can provide better roadmaps for research while still requiring me to dig into primary sources sounds like it could actually accelerate my professional development. I'm thinking I'll start small - maybe using general AI tools for initial research on unfamiliar topics, always followed by thorough verification through traditional sources. Once I'm more comfortable with that workflow, I might explore some of the specialized tax tools mentioned here. Thanks to everyone for sharing their real-world experiences. This is exactly the kind of practical insight that's hard to find elsewhere!

I've been following this discussion with great interest as someone who's been cautiously exploring AI for tax work over the past few months. The balanced perspectives shared here are exactly what I needed to hear. What really resonates with me is the emphasis on AI as a research accelerator rather than a replacement for professional expertise. I've been using ChatGPT for some general tax research questions, and while it's helpful for getting oriented on unfamiliar topics, I've definitely caught it making confident-sounding statements that turned out to be wrong when I checked the actual regulations. @Mason Davis - your suggestion about keeping a log of AI errors is brilliant. I'm going to start doing that immediately. It would be incredibly valuable to build up that pattern recognition of where these tools tend to fall short. I'm particularly interested in the document analysis capabilities that several people have mentioned. That seems like where AI could provide the most value-add beyond what I can do with traditional research methods. Being able to upload complex returns and have AI flag potential issues or missed opportunities could be a real game-changer for thorough review processes. Has anyone tried using AI for tax planning scenarios? I'm wondering if it's useful for modeling different strategies or if the complexity makes it too unreliable for that kind of forward-looking analysis.

This is exactly the kind of detailed information that helps so much when dealing with tax anxiety! I'm going through a similar situation right now - my transcript just updated yesterday with code 766 and I was worried something was wrong. Reading through everyone's explanations about the normal progression from 810 → 766 → 768 → 846 really puts my mind at ease. It's frustrating that the IRS doesn't make these codes more transparent to taxpayers, especially when we're all just trying to understand what's happening with our own money. @Amelia Martinez - I hope your refund comes through quickly for those medical expenses! The timeline everyone's describing sounds pretty consistent across different cases.

This thread has been incredibly helpful! I'm dealing with a similar situation where my transcript shows the 766 code but I haven't seen the 768 yet. Reading everyone's experiences gives me hope that this is just part of the normal process. One thing I'd add for anyone else following this - I called the IRS automated line (1-800-829-1040) and pressed 1 for English, then 2 for personal tax questions, then 1 for refund info, then 3 for transcript questions. The automated system actually confirmed that my return is in processing and to expect updates within 7-14 days. Sometimes the automated system can give you a bit more context than just staring at the codes! @Amelia Martinez - fingers crossed your 846 code appears soon so you can get that refund for your medical expenses!

I might suggest a slightly different approach, though I'd be cautious about expectations. If your return was very recently filed, you could potentially file an amended return (Form 1040-X) to correct the banking information. However, this might actually slow things down further rather than speed them up. In most cases, it's generally better to simply let the incorrect direct deposit attempt fail naturally and wait for the paper check. The IRS systems are designed to handle this situation automatically, and intervening sometimes creates more complications than it resolves.

I went through this exact situation two years ago and can confirm what others have said - it's frustrating but the system handles it automatically. The most important thing is to NOT panic and try to "fix" it by filing amendments or calling repeatedly. I made that mistake and it just created confusion. One thing I'd add that hasn't been mentioned - make absolutely sure your mailing address is current with the IRS. When my direct deposit failed, I realized I had moved since filing my previous year's return, and the IRS had my old address on file. I had to call to update it before they could mail the check. You can verify your address through the "Where's My Refund" tool or by checking your most recent tax transcript. The whole process took about 6 weeks total for me, but knowing what to expect made it much less stressful than constantly wondering what was happening.

One tip that helped me as a server - fill out a new W-4 and ask for additional withholding on line 4(c). I put an extra $20 per paycheck which isn't much weekly but adds up to enough extra withholding that I don't get surprised at tax time. Most restaurant workers underpay throughout the year without realizing it, especially if you get cash tips that aren't properly reported. That extra withholding covers you.

Hey Paolo! I totally feel your frustration - restaurant taxes are genuinely confusing and you're not alone in this struggle. Here's what's likely happening: That $192 from your $600 paycheck includes federal income tax, Social Security (6.2%), Medicare (1.45%), and possibly state taxes. The high percentage might be because restaurants often withhold based on your current pay period, not accounting for fluctuating schedules or slower weeks. The big issue with your refund getting cut in half is probably the dependent status situation. If you're 23, living independently, and paying your own bills, you might actually qualify to file as independent rather than being claimed as a dependent. This could significantly help your tax situation since you'd get the full standard deduction. Also, restaurant payroll systems sometimes don't handle tipped income withholding correctly. Even if you're not making tons in tips, the system might assume you are and underwithhold accordingly. My advice: 1) Talk to your parents about whether you should still be claimed as their dependent, 2) Consider filling out a new W-4 with your HR person to adjust your withholding, and 3) Keep track of all your tips (even small cash ones) so you're not surprised by unreported income at tax time. Restaurant work taxes are genuinely more complicated than regular jobs, so don't feel bad about being confused!