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I went through this exact process last month. Complete the verification first. Your amendment won't move forward until you do. It took me 20 minutes to verify online. Then my amendment started processing within 48 hours. Don't panic about the timing - this is normal procedure for independent contractors with amended returns.
I'm going through something similar right now! Filed my amendment three weeks ago after realizing I forgot to include some 1099-NEC income from a side gig. The verification request showed up about 10 days later. From what I've learned lurking in this community, it's totally normal - the IRS has ramped up identity verification especially for amended returns involving unreported income. I completed the online verification yesterday (had to answer questions about my previous addresses and loan amounts), and my transcript already shows the verification was accepted. The whole process was actually smoother than I expected once I stopped worrying about it. Just make sure you have your prior year tax info handy when you do the verification - some of the questions reference old returns.
One thing no one's mentioned - report the preparer! If they're filing fraudulent returns, they're doing it to other people too. You can file Form 14157 (Complaint: Tax Return Preparer) with the IRS. If you suspect your refund was inflated through fraud, also file Form 14157-A. The IRS takes preparer fraud seriously because it affects their whole system.
Does reporting actually do anything? I've heard the IRS is so backed up they never investigate these complaints.
They absolutely do investigate preparer fraud, especially when multiple people report the same preparer. The IRS has a dedicated office for this because preparers filing fraudulent returns is a huge problem that costs them billions. They don't have resources to go after every small discrepancy, but preparer fraud is one of their priority areas. I know someone who works for the IRS, and they said these reports definitely get reviewed, but it can take time. The more documentation you provide with your complaint, the more likely they'll act on it quickly.
I'm a seasonal preparer and just want to point out that sometimes legitimate preparers DO find deductions/credits that people miss when they self-prepare. Before assuming fraud, check if: 1) You might have qualified for EIC you didn't know about 2) Your education expenses qualified for American Opportunity Credit 3) You had self-employment deductions you didn't realize were valid 4) Your filing status changed in a beneficial way Not all big refunds are fraud - sometimes it's just expertise! Ask your preparer to walk through each deduction with you.
This is an important point. Last year when I switched to a preparer after doing my own taxes for years, they found over $4k in refunds I had missed by not knowing about the Child and Dependent Care Credit that applied to my situation. I thought they were committing fraud until they showed me exactly where in the tax code I qualified. Legitimate preparers should always be willing to explain.
Thanks for bringing this up! I did get a copy of my return and I'm seeing some business expenses I don't recognize on a Schedule C. The thing is, my 1099-NEC was just for picking up serving shifts at a restaurant - not running my own business. She claimed nearly $12k in "business expenses" against that income. When I asked about it, she just said "that's how you maximize your return, don't worry about it." Seems sketchy.
Pro tip: Keep checking your mail and make copies of EVERYTHING. The IRS loves to say they never got stuff even when they did lololol
I had a 922 code show up on my 2021 return and it took about 6 weeks to get the actual notice. Turned out they just wanted to verify some documents I had submitted. The whole process took about 4 months total but wasn't as scary as I thought it would be. Don't stress too much - just gather all your supporting docs now so you're ready when the letter comes!
ask him to explain EXACTLY what deductions or credits he's planning to use that turbotax isn't giving you. if he can't explain it clearly or gets defensive, run away!!!! my cousin's tax guy did this last year, claimed a bunch of fake business expenses and education credits she didnt qualify for. she ended up getting audited and had to pay back $4200 plus penalties!!!
this is so true! i used to work at a tax office (not saying which one lol) and some preparers would just make up business expenses or claim random credits to get bigger refunds and more clients. they knew most people never get audited so they played the odds. totally unethical but happens ALL THE TIME especially with earned income credit.
This sounds like a classic case of a preparer who's going to claim deductions you don't qualify for. The jump from $1,450 to $3,200+ for a straightforward W-2 + side gig situation is a huge red flag. Here's what I'd recommend: Before you give this guy any documents, ask him to write down exactly which deductions or credits he plans to claim that TurboTax missed. If he mentions anything about business expenses for your W-2 job, home office deductions you don't qualify for, or education credits you're not eligible for - walk away immediately. The "knows all the tricks" line is what every shady preparer says. Legitimate tax professionals explain their strategies clearly because they're following actual tax law, not trying to game the system. Remember, even if this guy prepares your return, YOU are the one who signs it and YOU are responsible if the IRS comes after you for improper deductions. The extra $1,750 he's promising could easily turn into thousands in penalties and interest if you get audited. Trust your gut - if it feels too good to be true, it probably is. Stick with reputable software or find a CPA who will explain their work transparently.
Giovanni Moretti
Has anyone used TurboTax to report gambling? I won about $2000 on a slot machine last year (got a W-2G) but probably lost $3000 overall for the year. Not sure how to handle this.
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Fatima Al-Farsi
ā¢I've used TurboTax for this. You report the $2000 W-2G as income, then if you itemize deductions (Schedule A), you can deduct losses up to the amount of your winnings. BUT you need documentation of those losses like a gambling diary or player's card statements. The catch is that most people are better off taking the standard deduction unless they have a lot of other deductions like mortgage interest or huge medical expenses. So you might end up paying tax on the $2000 win even though you had a net loss overall. It's one of those unfair things about gambling taxes.
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GalacticGuru
I went through something similar last year and can share what I learned. The key thing to understand is that the IRS threshold for slot machine reporting is $1,200 or more from a single spin - not cumulative winnings. Since you never hit that threshold and received no W-2G forms, you have no reporting obligation. Those 800+ transactions are just the casino's way of tracking every individual bet you made. Think of it like your credit card statement showing every small purchase - it's record-keeping, not something you need to report to the IRS. The fact that you had a net loss of $45 with no significant individual wins means this is a non-issue for your taxes. You can safely ignore this on your TurboTax return and focus on your actual tax obligations. The gambling statement is there for your records, but it doesn't create any tax liability when you had no reportable winnings.
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