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Don't forget about depreciation if you go with actual expenses method! That's often the biggest benefit compared to standard mileage, especially in the first few years of a newer vehicle. But remember depreciation reduces your basis in the vehicle which matters when you sell it later.
Can you explain the basis reduction thing more? I don't really understand how that affects me when I sell my car eventually.
Sure thing. Your "basis" in a vehicle is essentially what you paid for it, adjusted for certain factors. When you claim depreciation for business use, you're reducing this basis. For example, if you bought a car for $30,000 and claimed $10,000 in depreciation over a few years (for the business portion), your basis becomes $20,000. When you later sell the car, the difference between your reduced basis and the selling price determines your gain or loss. If you sell it for $25,000, you'd have a $5,000 gain ($25,000 - $20,000), and a portion of that gain related to your business use would be taxable. This is one reason some people prefer the standard mileage rate - it's simpler and doesn't create these basis adjustment complications when you sell the vehicle later.
Great question! I went through this same confusion when I started my freelance marketing business. One thing that really helped me was creating a simple spreadsheet to track my business vs personal miles each month. I use my phone's GPS history to double-check my estimates - it's surprisingly accurate for reconstructing trips. For the 60% business use you mentioned, just make sure you can back that up with records. The IRS likes to see documentation like client appointment calendars, receipts from supply runs, and a mileage log. I learned this the hard way during a small audit last year - they wanted to see actual proof of my business driving patterns, not just my estimates. Also, don't forget that if you work from a home office, trips from your home to clients or suppliers typically qualify as business miles. But commuting from home to a regular workplace generally doesn't count as business use, even if you're self-employed.
I had to verify last year and my transcript stayed blank for 8 weeks exactly. Then one Friday morning it updated with all codes at once, and refund was in my account the following Wednesday. No warning, no gradual updates - just nothing nothing nothing BOOM everything at once. hang in there!
I'm going through the exact same thing! Verified my identity on March 22nd and it's been radio silence ever since. WMR is stuck on that useless one bar and my transcripts show absolutely nothing. It's so frustrating because I filed in early February too and was expecting my refund by now. Reading through everyone's experiences here is actually really helpful though - sounds like 8-9 weeks is pretty normal for ID verification cases. I'm trying to be patient but it's hard when you're counting on that money! Thanks for posting this question, at least now I know I'm not alone in this waiting game.
Just want to share a success story! I verified on February 24th and my transcript FINALLY updated yesterday. Based on the IRS forums and r/IRS threads I've been obsessively reading, it seems like they're processing verifications from late February now. According to the IRS Operations Status page (https://www.irs.gov/newsroom/irs-operations), they're still dealing with a backlog from the identity verification surge that happened in February. Hang in there - you should see movement within the next 2 weeks based on current processing patterns!
I'm going through the exact same timeline as you - verified my identity on March 8th and still seeing "no return filed" on my transcript. It's so frustrating when you're counting on that refund! I called the IRS last week and the representative told me that once you complete identity verification, your return essentially gets placed back at the beginning of the processing queue, which is why it can take so long. She said to expect 6-9 weeks from the verification date, not from when you originally filed. I know it's not the answer we want to hear, but at least we're not alone in this waiting game. Fingers crossed we both see some movement soon!
I'll share my personal experience with amending after the statute of limitations expired. I discovered a mistake on my 2018 return in 2023 - I had forgotten to claim a $4,200 business expense deduction. Since it was past the 3 years, I couldn't get a refund, but I filed the amendment anyway for my own records. The IRS processed it but sent a letter saying no changes would be made due to the expired statute. No penalties, no questions, just a notice acknowledging they received it but couldn't issue a refund.
One thing to keep in mind about the statute of limitations is that it can get complicated if you have multiple tax issues in the same year. I had a situation where I made both a simple math error AND failed to report some freelance income on my 2019 return. The math error fell under the standard 3-year statute, but the unreported income was substantial enough (over 25% of my reported income) that it triggered the 6-year rule. So even though most of my return was "safe" after 3 years, that one issue kept the door open for the IRS until 2025. The lesson I learned is that you really need to look at each potential issue separately - they don't all necessarily follow the same timeline. If you're unsure about multiple problems on the same return, it's worth getting professional advice to understand which statute applies to what.
Jessica Suarez
Based on those codes, I'm guessing you claimed some tax credits they're verifying. EITC? Child Tax Credit? Education credits? Those tend to trigger these kinds of freezes. Get ready for a long wait unless you can get someone on the phone.
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Giovanni Rossi
I went through this exact nightmare last year with the same code combination. The 810/570/971 sequence usually means they're doing income verification or reviewing credits you claimed. The frustrating part is the 971 code means they supposedly mailed you a notice but mail delivery has been terrible lately. Here's what worked for me after 5 months of waiting: 1. Check your online IRS account - sometimes notices show up there before arriving by mail 2. Order your wage and income transcript to see if there's unreported income they found 3. If you claimed EITC, CTC, or education credits, gather all supporting documents now The $450 reduction in your refund suggests they adjusted something specific. Don't wait for the notice - be proactive. You can also try walking into a Taxpayer Assistance Center if you have one nearby, though they're usually booked solid. Hang in there - I know how maddening this process is but it will eventually get resolved!
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