Make sure you're documenting EVERYTHING during this process. Keep a log of every call you make (date, time, representative name or ID if possible), copies of all bank statements, and any correspondence with either the IRS or your bank. If this drags on and you end up needing to request an abatement of penalties and interest, having detailed records of your good-faith efforts to resolve the issue will be crucial.

I went through something very similar last year and completely understand your frustration. The key thing that finally worked for me was being extremely persistent and specific about the language I used with the IRS. When you call again, don't just say you need help finding a payment. Instead, say exactly this: "I need to request a payment tracer for an ACH transaction that was not properly credited to my account." Then immediately provide the ACH trace number, the exact amount, and the date it cleared your bank. Also, ask them to check if your payment was posted to a different tax year or got applied to someone else's account with a similar name or SSN. This happens more often than you'd think, especially with common names. One more thing - if the first representative says they can't help, politely end the call and try again. Different reps have different levels of experience with payment traces. I literally had to call four times before I got someone who knew exactly what to do with my ACH documentation. The whole process took about 6 weeks to fully resolve, but once the right person initiated the trace, they found my payment and even removed the interest that had accumulated. Hang in there - you WILL get this sorted out!

Has anyone used TurboTax to file previous year taxes? Or do I need to use a different software for 2023 returns at this point?

You're definitely not screwed! I was in almost the exact same situation - completely forgot about my 2022 taxes until I was already filing my 2023 ones. The stress was real, but it turned out to be much less of a disaster than I thought. Since you mentioned you think you're owed a refund based on your withholdings, that's actually great news. As others have said, there are no penalties for late filing when you're getting money back. The IRS isn't going to punish you for being late to collect your own money! I'd recommend gathering all your 2023 tax documents (W-2s, 1099s, etc.) and just get it done. Even if you're not 100% sure about the refund, filing will give you certainty either way. If you do end up owing a small amount, the penalties probably aren't as scary as you're imagining, and filing now stops them from growing. Don't let the anxiety keep you from taking action - I put it off for months because I was worried, but once I actually sat down and did it, the whole thing took maybe 2 hours and I got a nice refund check. You've got this!

Pro tip: If you do manage to get someone on the phone, be super nice to them. These IRS agents deal with angry people all day. If you're friendly, they're more likely to go the extra mile to help you out.

I went through this exact same thing last year and it was absolutely maddening! Turns out my refund was held because I had moved and they needed to verify my address. The crazy part is they never sent me any notice about it - I only found out when I finally got through to someone after weeks of trying. My advice: if you haven't already, double-check that all your personal info (address, bank account, etc.) matches what they have on file. Sometimes the smallest discrepancy can trigger a hold. Also, don't give up on calling - I know it sucks, but persistence really does pay off. You'll get through this! 💪

This might not be relevant to everyone but check if your state has a separate withholding form! I adjusted my federal W4 but forgot about my state withholding and was confused why my take-home wasn't changing as much as expected.

Just wanted to add - if you're in a tight financial spot like you mentioned, be really careful about adjusting your withholding too aggressively. While getting more money in each paycheck feels great right now, you don't want to end up with a massive tax bill next April that you can't afford to pay. The IRS charges penalties and interest on underpayments, which could make your financial situation even worse. Consider using one of those withholding calculators mentioned earlier to find the sweet spot where you get more take-home pay but still cover your tax liability. Also, if you're struggling with bills, look into whether you qualify for any tax credits like the Earned Income Credit or Child Tax Credit - these can significantly reduce what you owe and might allow you to withhold even less while staying safe.

Someone correct me if I'm wrong, but if you received a CP2000 and you know you didn't file for that year, wouldn't you need to file a complete tax return for that year first before responding to the CP2000? The IRS is saying "hey we have info showing you made this money" but you need to properly report all income and transactions for that year, not just send the 8949 by itself. I think you need to file the original return that was missing, which would include 8949 + Schedule D + 1040, etc.

Don't panic! I work with these issues often. The key thing to understand is that the CP2000 is NOT a bill - it's a proposed adjustment based on information they received from third parties (in this case, Robinhood). Since you said you didn't file those transactions that year, what the IRS is seeing is income reported by Robinhood without any corresponding reporting of that income on your return. They don't have your cost basis information, so they're assuming your proceeds were all profit. First step is definitely to gather all your documents. Then you have two options: 1. File an amended return for that year including the Form 8949 and Schedule D 2. Respond directly to the CP2000 with a detailed explanation and documentation Either way, you'll need to show them your cost basis for each transaction. If it's just a few transactions, option 2 might be easier. If it was many trades, you probably need to file an amended return.