Congrats on the approval! Quick tip: make sure to save that notice somewhere safe. You wont need form 8862 next year but keep proof just in case

Got my 8862 approval letter last week and my refund hit my account yesterday - only took 12 days! The 6-8 week estimate is definitely conservative. Keep checking your transcript for code 846, that's when you'll know the exact deposit date. The relief of finally being recertified after all that stress is amazing 🙌

Has anyone used TurboTax for this situation? I have the same 1099-R code 1B issue and wondering if TurboTax handles this exception correctly or if I need to override something.

I just went through this exact situation with my 2024 tax return! I had a 1099-R with code 1B for about $8,000 that I withdrew early from my 401k. Like you, I was confused about whether I needed to file Form 5329 separately. After researching and double-checking with the IRS instructions, I can confirm that code 1B is indeed treated the same as code 1 for the Schedule 2 line 8 exception. Since you already had the 10% penalty withheld when you took the distribution, you can simply report it on your 1040 and use the exception to avoid filing the separate 5329 form. The key is making sure your tax software correctly identifies that the penalty was already withheld and applies the exception. Most major tax software should handle this automatically when you enter the 1099-R information, but it's worth double-checking that Schedule 2 line 8 shows the correct penalty amount. One tip: keep good records of your 1099-R and any documentation about the penalty withholding, just in case the IRS has questions later. But you should be all set without the extra paperwork!

Pro tip: set up informed delivery with USPS so you know exactly when that check hits your mailbox

I went through this exact same situation last year. The 2-4 week timeline is pretty accurate, but here's what helped me: I called the IRS customer service line (1-800-829-1040) about 10 days after my deposit was rejected and they were able to confirm that my paper check had been processed and give me a rough mailing date. Also double-check that your address on file with the IRS matches exactly what you have with USPS - even small differences can cause delays. Hang in there, the check will come!

I'm dealing with a very similar situation right now with my late father's estate. One thing I learned that might help - even though your mom's assets were distributed through beneficiary designations, the IRS can still pursue what's called "transferee liability" against the beneficiaries if there were unpaid taxes at the time of transfer. The key is getting proper authorization to deal with the IRS on her behalf. Form 56 is definitely the right path, but make sure you're sending it to the correct IRS processing center for your state. I made the mistake of sending it to the wrong location initially and it delayed everything by months. Also, document everything with the IRS phone calls - dates, times, agent names/ID numbers. The inconsistent information you're getting is unfortunately typical, but having records helps if you need to escalate later. You might also want to request a manager or supervisor when you call back, as they tend to be more knowledgeable about deceased taxpayer procedures. The $12,300 won't just disappear, but you do have options for penalty abatement and possibly even an offer in compromise if the total distributed assets were less than the tax debt. Don't let the interest and penalties keep accumulating while you're stuck in this bureaucratic maze.

I went through this exact nightmare when my grandmother passed in 2022. The IRS bureaucracy around deceased taxpayers is absolutely maddening, but here's what finally worked: First, you're right that the tax liability doesn't just disappear. Since your mom's assets were distributed through beneficiary designations, you and your siblings could potentially be liable as transferees if the IRS can prove the tax debt existed when you received the assets (which it sounds like it did). The Form 56 route is correct, but here's the key - you need to establish yourself as the "informal fiduciary" since no formal estate was opened. Include a cover letter explaining that all assets were distributed via beneficiary designations and that you're acting on behalf of the deceased taxpayer to resolve outstanding tax matters. Also, when you call the IRS, specifically ask for the "Deceased Taxpayer" unit - don't let them transfer you to general collections. The regular agents literally don't have training on these situations, which explains the ridiculous advice about getting a power of attorney from a dead person. Once you get Form 56 processed, you can request penalty abatement for reasonable cause (accountant error) and potentially set up a payment plan if needed. The actual tax plus interest will likely still be due, but you can eliminate the penalties which are usually a big chunk of these bills. Don't ignore this - the IRS has up to 10 years to collect and can absolutely pursue transferee liability against beneficiaries. Better to deal with it now before more penalties and interest accumulate.

I received that letter february 1st and still nothing. transcripts haven't updated at all smh

I got the 4464C letter back in January for my 2023 return. They were reviewing my EITC claim since I had a new dependent. Took about 82 days total but I finally got my refund last week! The waiting is brutal but hang in there. One thing that helped was setting up informed delivery so I could see if any mail was coming from the IRS without having to wait for it to actually arrive.