Your roommate needs to file a 1040-X (amended return) immediately and pay back the extra refund he received from falsely claiming the dependent. He's committed tax fraud, plain and simple. The IRS matches Social Security numbers on tax returns, so they will eventually notice that this kid was claimed by someone with no relation and no history of claiming them before. They may also investigate whether the parent was involved in selling the dependent claim. Both your roommate and the neighbor could face serious consequences. In addition to penalties and interest, tax fraud can be prosecuted criminally with up to 3 years imprisonment for each false statement. The $400 payment creates evidence of willful intent to defraud, which makes it much worse.

One thing nobody's mentioned yet - your roommate should NOT contact the neighbor about this! He needs to fix his return independent of whatever the neighbor does. Reaching out could be seen as conspiring to get stories straight, which makes everything worse. Also, your roommate should NOT spend that refund money! The IRS will want it back plus interest, and possibly penalties. He should set aside the entire amount related to the false dependent claim so he can return it when he files the amended return. The Earned Income Credit alone for falsely claiming a child can be thousands of dollars. The IRS specifically targets EIC claims for audits because it's so frequently abused.

I can't imagine how stressful this must be for you right now. The silver lining is that everyone here is absolutely right - your Friday paycheck should be protected from this specific levy since bank levies are typically one-time seizures, not continuous drains on your account. Here's my advice based on what I've seen work for others in similar situations: Call the IRS collections line (800-829-3903) as early as possible tomorrow morning - ideally right at 8 AM when they open. Have your previous installment agreement details, SSN, and current financial information ready. Most importantly, be prepared to make at least a partial payment during the call if you can swing it - this demonstrates good faith and often helps expedite the reinstatement process. Since you had a previous installment agreement and your default was due to a legitimate life change (job transition), you're in a relatively good position to get this resolved quickly. Be upfront about the job change causing you to miss the payments - IRS representatives deal with life circumstances all the time and are often more understanding than people expect. One thing I'd add that others haven't mentioned: ask the representative to confirm over the phone that any future levy actions will be suspended once your agreement is reinstated, and request written confirmation of your new payment arrangement. This gives you documentation to reference if any issues arise. This situation is definitely fixable - try to get some rest tonight so you can tackle this with a clear head tomorrow morning. You've got this!

I've been in your exact situation and know how terrifying it is to see your account wiped out overnight. The good news is that your Friday paycheck should be safe - bank levies are typically one-time grabs, not continuous drains. Here's what worked for me: Call 800-829-3903 tomorrow at exactly 8 AM (shortest wait times). Have your previous installment agreement details, SSN, and be ready to make a payment during the call if possible - even $50 shows good faith. Ask specifically to "reinstate" your existing agreement rather than start fresh, which is much faster if your default was recent. Be honest about the job change causing missed payments - I was surprised how understanding the IRS rep was about life circumstances. Get the rep's name and badge number, and ask for written confirmation of your reinstated agreement. One tip that saved me: Ask to speak with a Revenue Officer if the first person can't help - they have more authority to make immediate decisions on levy releases and payment plan reinstatements. Also call your bank today if you can - they can't reverse the levy but they can flag your account to alert you if additional levy notices come in. This is absolutely fixable. Take a deep breath and tackle it step by step tomorrow morning. You've got this!

Quick question about the mailing process - how do you actually submit 6 years worth of returns? Should I mail them all together or separately? I've heard mixed things.

Just to add another perspective on the 6-year requirement - while the IRS typically focuses on the last 6 years for compliance purposes, the specific years can depend on your situation. If you haven't filed any returns, they generally want 2018-2023 (counting back from when 2023 returns were due). However, if you filed some years but not others, they might focus on just the missing years. Also worth noting that if you had very low income (below the filing threshold) for certain years, you might not have been required to file at all - though you'd miss out on potential refunds like the Earned Income Tax Credit. Given that you mentioned mostly gig work around $25k annually, you were likely required to file (especially with self-employment income over $400), but you probably are due refunds for most years. I'd recommend starting with 2021-2023 since those are the only years you can still claim refunds for, then tackle the older years for compliance. Good luck with getting everything sorted before your mortgage application!

Has anyone tried just calling the SSA instead of the IRS? They have all the W-2 info too and sometimes their phone lines aren't as busy. Worked for me last year when I couldn't get my W-2 from a company that went out of business.

Don't panic - you're definitely not out of luck! Missing W-2s are more common than you think, especially from older jobs. Here's what I'd recommend doing in order of priority: 1. **Start with the IRS wage transcript** - This is your best bet. You can get it instantly online at irs.gov if you can verify your identity, or request it by mail with Form 4506-T. It'll show all the federal tax info that was reported on your W-2. 2. **Try contacting the restaurant** - Even with new ownership, they might have access to old payroll records or can direct you to whoever handled payroll back then. Sometimes the payroll company keeps records even after businesses change hands. 3. **Check your state tax agency** - They often have wage information too and sometimes their systems are easier to navigate than the IRS. 4. **Last resort: Form 4852** - If you absolutely can't get the actual numbers, you can file this substitute form with your best estimates based on your bank statements. Since you're dealing with a 2-year-old return, there's no rush penalty for filing late if you're owed a refund (which you likely are given your income level). But if you owe money, there could be penalties and interest, so it's good you're getting this sorted out now. The fact that you have your bank statements showing the net deposits is actually really helpful - it gives you a starting point for estimating your gross wages and withholding.

I went through something very similar when a small restaurant I worked at suddenly closed without giving anyone their W-2s. Here's what I learned from that experience: The Social Security Administration check is definitely your first step - if nothing shows up there, you know for certain they never reported your wages. Then Form 4852 is your best friend. Don't overthink the income estimation - just be as accurate as you can with the information you have. One thing I wish someone had told me earlier: keep detailed records of everything you're doing to resolve this situation. Write down when you tried to contact the employer, what steps you took to get your W-2, etc. The IRS really appreciates seeing that you made good faith efforts to get proper documentation before filing the substitute form. Also, don't forget that you'll probably owe both federal and state income taxes on this unreported income, plus potentially some penalties for underpayment since nothing was withheld. It's worth setting aside some money now so you're not caught off guard when you file. The important thing is that you're taking care of it properly rather than trying to hide it.

I've been through this exact situation myself and want to emphasize something that hasn't been mentioned yet - make sure you also check if your state has any additional requirements for reporting this type of income situation. When I had to use Form 4852 for a similar issue with a closed business, my state (California) required me to also file a separate state form explaining the missing W-2 situation. Some states are more strict about documentation than others, so it's worth calling your state's tax department or checking their website to see if they have specific procedures. Also, if you remember approximately when you were paid throughout the year, try to break down your estimated income by quarters when you fill out the substitute form. This can help minimize any underpayment penalties since the IRS calculates those based on when income was actually earned versus when taxes were paid. Even rough estimates like "I earned about $X in Q1, $Y in Q2" etc. can make a difference in the penalty calculation. The good news is that once you get through this process, you'll have all the documentation you need and won't have to worry about this particular income being questioned later. The IRS really does work with people who are making honest efforts to comply.