Don't forget to file a police report too! When my identity was stolen for tax purposes, the IRS and credit bureaus wanted a copy of the police report. Some police departments let you file these reports online now which makes it easier.

I went through this exact same situation two years ago and understand how scary it feels! The IND-452 error almost always means someone has already filed a return with your SSN, but don't panic - the IRS has specific procedures to handle this. Here's what worked for me: First, I called the IRS Identity Protection Specialized Unit at 800-908-4490 (as mentioned above) - yes, it takes forever to get through, but they can confirm if a fraudulent return was filed. Second, I immediately filed Form 14039 (Identity Theft Affidavit) both online and by mail with my legitimate tax return. The most important thing I learned is to keep detailed records of EVERYTHING - every phone call, every form you submit, every piece of correspondence. Create a dedicated folder and document dates, times, and reference numbers. This saved me so much hassle when following up. Also, even though your credit reports look clean now, set up fraud alerts anyway. Tax identity theft doesn't always show up immediately on credit reports, and sometimes thieves use your info for employment fraud or other schemes that take time to surface. You WILL get through this, but it does take patience. My case took about 4 months to fully resolve, but I did get my refund eventually plus interest.

Just a personal experience - I've been filing Schedule C for small 1099 income (between $5k-15k) alongside my W-2 job for 7 years now. I take reasonable deductions including home office, internet percentage, and cell phone. Never been audited, not even a letter asking for clarification. I think the audit fears are overblown for small-time Schedule C filers who aren't claiming massive deductions or losses. The IRS is severely understaffed and focused on bigger issues. Just keep decent records and be reasonable with your claims.

I've been in almost the exact same situation! Last year I had about $80k W-2 income and $11k on a 1099-NEC from freelance work. I was terrified about filing Schedule C for the first time, but after doing research and talking to other people, I decided to go for it. I claimed home office deduction for about 8% of my apartment (dedicated workspace in my bedroom), plus reasonable percentages for internet and phone. Ended up saving around $400 after the software upgrade costs. Here's what gave me confidence: I kept meticulous records, took photos of my workspace, and was very conservative with my percentages. I also made sure I could justify every deduction if asked. A year later, no issues whatsoever - not even a peep from the IRS. My advice is to take the legitimate deductions you're entitled to, but be conservative and document everything well. The $310 savings might seem small, but it adds up over time, and you're following the tax code as it's written. Don't let fear of an audit stop you from claiming what you legally owe.

Just a warning - I had this same issue last year, ignored it thinking it was just a system glitch, and ended up with a massive headache. Turned out there was a typo in my SSN on my return (my fault) that caused the WMR error. The return was "accepted" because that just means the file format was valid, not that all the information was correct. I'd suggest getting a transcript if possible - if you can access that, your info is correct. If not, there might actually be an issue. I lost 6 weeks thinking it was just a system problem before I finally called and sorted it out. Just sharing so you don't make my mistake!

I'm going through this exact same situation right now! Filed on February 25th, got acceptance confirmation the next day, but WMR has been giving me the "information incorrect" error for over two weeks. I was starting to panic thinking something was wrong with my return. Reading all these responses is actually really reassuring - it sounds like this is way more common than I thought. I've been triple-checking my SSN, filing status, and refund amount ($2,891) but keep getting the same error. I think I'll try accessing my tax transcript like several people suggested instead of obsessing over WMR. It's good to know that the acceptance confirmation is what really matters and that these systems don't always sync up properly. Thanks everyone for sharing your experiences - definitely helps ease the anxiety!

I dealt with this exact situation two years ago. Send a response to the CP2000 notice with: 1. A copy of your W-2 showing the Code V amount 2. A letter explaining that this amount was already taxed as ordinary income 3. The corrected Form 8949 showing the proper basis adjustment 4. Any brokerage statements showing the exercise and sale If you're worried, call the number on the CP2000 notice and explain the situation. Be prepared to wait, but once you get someone on the phone they can usually see the issue pretty quickly. Don't just pay it - you're right that this would be double taxation.

I went through this exact same scenario last year with my NSO stock options and you're absolutely correct to question the CP2000 notice. The IRS receives a 1099-B from your broker showing the gross proceeds from the stock sale, but they don't automatically know that part of your "gain" was already taxed as compensation income when you exercised the options. Here's what worked for me: I responded to the CP2000 with a detailed letter explaining that the $49,000 (or whatever your exact amount is) shown in Box 12 Code V was already included in my Box 1 wages and subjected to income tax withholding. I included copies of my W-2, my final paystub showing the stock option exercise as taxable wages, and the brokerage statements showing the exercise and subsequent sale. The key is completing Form 8949 correctly - you need to show that your cost basis includes the amount already taxed as ordinary income. In Column (e), your basis should be the fair market value at exercise (which equals the amount in Box 12 Code V), not just what you paid for the options. Don't pay this assessment! The IRS accepted my explanation and the proposed tax was reduced to zero. This is a common mix-up with stock options, and once you provide the proper documentation, they usually resolve it quickly.

Think of Tax Topic 151 like a yellow light at an intersection - it's not telling you to stop completely, but it is telling you to proceed with caution. Without the "Take Action" message, it's like that yellow light just came on, rather than being about to turn red. I had this exact situation in early March, and it turned out they were just verifying my healthcare premium tax credit. The refund was delayed by about 3 weeks, but I didn't have to submit anything additional. They resolved it internally and then the status changed to approved.

I can relate to your anxiety about this - medical bills waiting definitely adds pressure to the situation. Based on what I've seen in this community, Tax Topic 151 without the "Take Action" message is generally a more manageable situation than the full version. It typically means the IRS is doing an internal review but hasn't identified anything that requires immediate action from you. That said, I'd recommend checking your account transcript on the IRS website if you haven't already - it often shows more detailed codes that can give you a clearer picture of what's happening. Code 570 usually means they've put a hold on your refund, while code 971 indicates they've issued or are preparing to issue a notice. The timing can be frustrating, but many people in similar situations have seen their refunds process within 2-4 weeks without needing to take any action. Keep monitoring both your WMR status and your mail, and try not to stress too much in the meantime. The fact that you don't have the urgent action message is actually encouraging.