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I'm going through almost the exact same thing right now! Filed in March, amended in July, got my CP05 in October. The "frivolous position" thing freaked me out at first but my tax preparer explained it's usually something minor that gets flagged by their system. The good news is you avoided that huge penalty! I've been checking my transcripts weekly and calling every month or so. No movement yet but the IRS rep told me amended returns with CP05 letters are taking 4-6 months minimum this year due to staffing issues. I know the wait is killing you (trust me, I feel it too) but from everything I've read here and other forums, most people do eventually get their refunds. Keep your documentation ready and maybe try calling that number if you haven't heard anything by the 4-month mark. We got this! šŖ
This gives me so much hope to hear from someone in almost the exact same timeline! š Your tax preparer's explanation about the "frivolous position" being something minor makes total sense - I was really confused about what that even meant. It's crazy that amended returns are taking 4-6 months minimum now, but at least we know it's not just us. I've been hesitant to call because I figured they'd just tell me to wait, but maybe I'll try next month if nothing changes. Thanks for the encouragement - it really helps to know we're not alone in this! šŖ
Hey Ryan, I totally get your frustration - I went through something very similar last year and the waiting was absolutely nerve-wracking! The good news is that CP05 letters, while scary, are actually pretty routine when you file an amendment. The fact that they specifically acknowledged your amended return "corrected your frivolous position" and you avoided that $5,100 penalty is HUGE - that's a major win right there! The "further examination" part sounds intimidating but it's basically just their way of saying they need to manually review your changes, which unfortunately takes forever with their current staffing issues. From my experience and what I've seen others post here, most people with CP05 letters do eventually get their refunds - it just takes way longer than anyone wants. My advice: keep checking your online account transcripts regularly (look for any 846 refund codes), and if you hit the 120-day mark with no communication, definitely call that 866 number. I know the wait is brutal but try to stay positive - you're actually in better shape than you might think! š¤
I just went through this exact process and got my refund yesterday! Here's what happened: 1. Received letter asking for verification on March 15 2. Verified online March 17 3. Transcript updated with 571 code (resolved hold) on March 27 4. 846 code appeared April 1 5. Money in my account April 3 Total time from verification to deposit: 17 days. The key was watching my transcript, not WMR which never updated until after I got the money.
I'm going through this right now too! Just verified my identity 3 days ago after getting the 5071C letter. Based on what I'm reading here, it sounds like the transcript is definitely the way to go for tracking progress rather than relying on WMR. For anyone else waiting, I found this helpful breakdown of the process: ⢠Verification confirms you are who you say you are ⢠Your return then goes back into the normal processing queue ⢠Average timeline seems to be 2-3 weeks based on everyone's experiences ⢠Watch for code 846 on your transcript (that's when refund is issued) @NeonNinja - hope you get your refund soon for your mom's medical expenses. The waiting is definitely stressful when you have important things to pay for. Fingers crossed it comes through in the next week or two!
Based on the current tax season patterns, it seems like most post-verification refunds are probably arriving within about 7-14 days, though some might take a bit longer depending on various factors. The IRS systems appear to be processing somewhat faster than last year, at least for relatively straightforward returns. You might want to check your transcript daily if possible, as that's usually where you'll likely see updates before they show in WMR.
I went through identity verification last year and wanted to share my timeline to help set expectations. I verified on a Tuesday evening, and my transcript updated the following Friday with processing codes. My direct deposit hit exactly 12 days after verification. A few things that helped me stay sane during the wait: First, check your transcript weekly rather than daily - it typically only updates overnight on Thursdays/Fridays. Second, don't panic if WMR shows "still processing" for a while after verification - that's normal. Third, the 846 code with a DDD (direct deposit date) is what you're looking for on your transcript. Since you verified on Sunday and it's already been processed according to the IRS rep, I'd expect to see movement in your transcript by this Friday, with your refund likely arriving within the next 1-2 weeks. The fact that your verification notification disappeared immediately is actually a good sign - it means the system accepted it right away.
This is super helpful, thank you! I'm new to checking transcripts - is there a specific time on Thursdays/Fridays when they typically update? I've been checking randomly throughout the day and haven't seen any changes yet. Also, when you say "processing codes," are there specific ones I should be looking for before the 846 code appears?
For ed-tech companies like Khan Academy, you'll likely want to use SIC code 7372 (Prepackaged Software) as your primary classification, especially if your revenue model is subscription-based software delivery. The key factor is how your business generates revenue - if it's primarily through software licensing/subscriptions, then 7372 is most appropriate. However, I'd strongly recommend also familiarizing yourself with the corresponding NAICS code 511210 (Software Publishers), as most government forms and business registrations now use NAICS instead of SIC. Many banks, investors, and regulatory agencies have transitioned away from SIC codes entirely. One thing to consider is that some states have specific licensing or regulatory requirements for educational service providers, regardless of your delivery method. It's worth checking with your state's business registration office to see if there are any additional requirements for companies providing educational content, even through software platforms. The educational component doesn't necessarily require a separate classification if your primary business activity is software development and distribution - the fact that your software serves an educational purpose doesn't change the fundamental nature of your business model.
This is really helpful clarification! I'm just starting to navigate this process for my own ed-tech startup and was getting overwhelmed by all the different classification options. Your point about the revenue model being the key factor makes a lot of sense - we're definitely more of a software company that happens to focus on education rather than an educational institution that uses software. I hadn't realized that NAICS codes were becoming more standard than SIC codes. That's good to know before I start filling out registration paperwork. Do you happen to know if there are any resources that show the mapping between SIC and NAICS codes, or is it pretty straightforward to find the equivalent classifications? Also, your mention of state-specific requirements for educational content providers is something I definitely need to look into. I hadn't even considered that the educational aspect might trigger additional regulatory requirements beyond the standard software business registrations.
@Freya Andersen The Census Bureau provides a great crosswalk tool that maps SIC codes to NAICS codes - you can find it on their website under NAICS "& SIC Correspondence Tables. For" software publishers like us, SIC 7372 maps pretty directly to NAICS 511210, so it s'fairly straightforward. Regarding state requirements, I d'definitely recommend checking with your secretary of state s'office early in the process. Some states classify any business providing educational content as needing additional oversight, even if delivered through software. For example, California has specific requirements for companies offering educational services to minors, regardless of the delivery method. One more tip - when you re'filling out your initial business registration, many forms now ask for both your primary NAICS code AND any secondary codes that apply to your business activities. This is where you might list both the software classification and an education-related code if significant portions of your business involve both activities.
I went through this exact same classification dilemma when launching my educational platform last year. After consulting with both a business attorney and my accountant, we settled on SIC 7372 (Prepackaged Software) as the primary code since our core business model is software subscription services. The key insight my attorney shared was to focus on your primary revenue-generating activity rather than just the subject matter of your content. Even though we're in education, we're fundamentally a software company that serves educational markets - similar to how Salesforce is a software company that serves sales teams. One practical tip: when filling out forms, I've found it helpful to have a brief one-sentence explanation ready for why you chose your classification. Something like "Software development and licensing with educational applications" has worked well for me when questions arise about why an education-focused company uses a software classification. Also worth noting that some business insurance policies have different rates based on classification codes, so this choice can have real financial implications beyond just paperwork compliance.
Maya Diaz
Is this your first time needing to verify your identity with the IRS? I had to do this last year and was worried too, but after verification my refund came about 2 weeks later. Do you have any credits on your return like Child Tax Credit or Earned Income Credit? Those can add extra time even after verification.
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Peyton Clarke
I completed ID verification about 2 weeks ago and I'm still waiting to see movement on my transcript. Reading through everyone's experiences here is really helpful - it sounds like the 9-14 day timeframe is pretty common right now. I've been checking my Account Transcript daily (probably obsessively at this point) but still only see the 570 hold code. No 571 release yet. It's reassuring to know this is normal and I'm not the only one dealing with the uncertainty. The waiting is definitely the hardest part when you're expecting a refund!
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Amina Diallo
ā¢I'm in almost the exact same situation! Verified about 10 days ago and obsessively checking transcripts daily too. It's good to know the 9-14 day window seems to be the norm this year. The waiting really is the worst part, especially when you're relying on that refund. Hang in there - sounds like we should both see movement soon based on what others are sharing here!
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