Does anyone know if FreeTaxUSA can handle 1099-INT from IRS refunds? That's what I'm planning to use this year, but now I'm worried it might not work for this situation.

Yes, FreeTaxUSA can definitely handle 1099-INT forms from IRS refunds in their free version. I switched to them last year after getting frustrated with TurboTax's upselling. FreeTaxUSA includes all these forms in their standard free package - you only pay for state filing. They have a section specifically for interest income where you can enter all the 1099-INT information including the payer's TIN/Federal ID Number.

The IRS only sends a 1099-INT if they paid you interest on your refund. If your refund was delayed beyond 45 days after the filing deadline, they're required to pay interest. So if you got your refund quickly last year, you wouldn't get this form.

Did you write this letter yourself or have a professional help you? I'm wondering if I should add something similar but I'm not sure how to structure it without sounding like I'm making excuses.

I wrote it myself, but I followed a clear structure. First paragraph explained the events that led to my tax debt (medical crisis + job loss). Second section outlined my current financial situation with specific numbers referenced from my 433-A form. Third part detailed why my situation was unlikely to improve (permanent disability affecting earning capacity). Last section expressed my good faith desire to resolve the debt while acknowledging my limitations. Keep it factual rather than emotional. Reference specific supporting documents you've included (medical records, disability determination, etc). I also had my accountant review it to make sure I wasn't saying anything that contradicted my financial statements. About 2 pages total - not too long, but enough to tell the complete story.

This is such good advice. I missed my appeal window by 2 days and had to restart the entire process. Added 6 months to the whole ordeal. Make sure your contact info is current with the IRS too! My rejection letter went to an old address even though I'd updated everything on my forms.

Omg thank you for mentioning this! I totally would have forgotten about the state part. Do you know if most CPAs automatically handle both the federal and state extensions when you ask them to file an extension?

Most CPAs will handle both federal and state extensions automatically if they know which state(s) you need to file in. It's part of their standard process, but it never hurts to specifically ask to make sure they're filing all necessary extensions. Always good to explicitly confirm they're handling both, especially if you have multi-state filing requirements or if you've recently moved. Different states have different rules about extensions too - some automatically grant the same extension as federal while others require their own form.

This is really good advice. I always send in a payment with my extension just to be safe, even when I think I'm getting a refund. Better to get that money back later than pay penalties!

Thanks for bringing this up! I checked and the second notice is dated about 3 weeks after my payment was processed. So unfortunately it's not just a timing issue. And yes, I specifically selected tax year 2018 Form 1040 when making the payment online - I was very careful about that since I didn't want any mix-ups. I think what might have happened is that the payment went through but wasn't applied to the specific CP22A balance. Maybe it was applied to the original tax liability but not to the additional assessment? The whole thing is so confusing and there's no way to check exactly where the payment was applied online.

That's definitely more concerning then. You're probably right about the payment being misapplied within the same tax year. The IRS has different "buckets" for different types of assessments, even within the same tax year. When you do manage to speak with someone (either through regular calls or using one of the services mentioned above), specifically ask them to check ALL modules for tax year 2018 to locate your payment. Make sure they know it was in response to a CP22A so they can properly apply it to the additional assessment rather than just the original tax liability. Be sure to have your payment confirmation number handy when you call. That's the fastest way for them to trace where your money actually went in their system.

This is great advice. The transcript will show all transactions for the tax year including payments, assessments, penalties, and interest calculations. Look for transaction code 670 which indicates a payment was received and applied. The date and amount should match your payment.

Where did you find Excel-themed jewelry? My girlfriend is an accountant and that sounds perfect for her birthday coming up!

I found it on Etsy! There are several artists who make spreadsheet-inspired necklaces and earrings. Some use the actual Excel icon, while others create pendants that look like spreadsheet formulas or functions. Search for "excel jewelry" or "spreadsheet jewelry" and you'll find plenty of options. There's also a shop that makes custom formula bracelets where you can put in your own Excel formula (my wife loves VLOOKUP so I got her that one). They're surprisingly elegant looking while still being a perfect inside joke for spreadsheet lovers.

Omg that's actually brilliant! Did it really look like your friend? I'm worried it might come out looking creepy rather than funny.