Has anyone here had experience with the IRS Fresh Start program? I've heard it can help if you owe taxes but are having financial difficulties. Maybe that's another option for OP?

I had this exact same error message when I tried to set up my installment plan in 2022! It's so frustrating when the system just gives you that vague "unable to complete transaction" message with no real explanation. In my case, it turned out to be a combination of things - my return was still being processed even though I got the acknowledgment, AND I had made a small math error on one of my forms that created a mismatch in their system. The error was tiny (like a $50 difference) but it was enough to trigger that rejection. What finally worked for me was waiting about 3 weeks after filing, then trying the online system again. By then my return had fully processed and the system recognized everything properly. If you're still getting the error after waiting, definitely try the paper Form 9465 route - sometimes the manual processing can handle situations that the automated system can't. Also, don't panic about the penalties! They're really not that bad compared to other debt, and the IRS is generally pretty reasonable about working with people who are making good faith efforts to pay. You're doing the right thing by trying to set up a payment plan instead of just ignoring it.

Listen, don't bother waiting for that letter. It could take weeks and even then won't have all the info you need. I spent HOURS on the phone trying to get answers about my offset earlier this year. Finally used Claimyr (claimyr.com) and got connected to an actual person at Michigan Treasury in under 30 minutes. They explained exactly what the debt was for and I was able to dispute it right then and there. Talking to an agent directly got my issue resolved in one call instead of weeks of back and forth. Never going back to the old way of dealing with tax issues again.

I went through this exact same situation with Michigan Treasury about 6 months ago. The waiting is the worst part because you have no idea what they're claiming you owe or how much they took from your refund. In my case, it turned out to be an old unemployment overpayment from 2020 that I had completely forgotten about. The letter took almost 3 weeks to arrive, and by then I was stressed out of my mind thinking it was some huge debt. My advice would be to try calling them directly at 517-636-4486 if you can't stand waiting. Yes, you'll probably be on hold for a while, but at least you'll get answers. Have your SSN and tax return info ready when you call. The good news is that if it turns out to be a legitimate debt you forgot about, most agencies will work with you on payment plans. And if it's an error (which does happen), you can dispute it once you know what agency is claiming the debt. The uncertainty is definitely the hardest part, but try not to panic. Most of these offsets are for relatively small amounts that just grew with penalties over time.

So if I'm reading this right, Fiverr actually handles all the tax reporting stuff for the transactions on their platform? I've been avoiding using freelancers for my hobby projects because I was worried about tax paperwork. This is a huge relief!

This is exactly the kind of confusion that trips up so many people! Your buddy means well, but he's mixing up business and personal tax rules. As everyone else has confirmed, you're totally in the clear here. The 1099-NEC requirement only kicks in when you're operating a business and paying contractors for business services. Since you commissioned this artwork for personal use (not for a business), you have zero tax reporting obligations - even though it was over $600. Plus, since you used Fiverr, the platform handles all the tax reporting anyway. They're the ones who pay the artist (minus their fee), so they're responsible for any necessary tax forms. You're just a customer making a purchase. Your situation is super common - I see this question pop up a lot during tax season. People get nervous when they hear "$600" and "1099" in the same sentence, but those rules really only apply to business expenses.

Document EVERYTHING. Every call, every letter, every case number. You'll need it all later trust me

This exact thing happened to me last year! The key is getting your IP PIN from the IRS - call the Identity Protection PIN line at 800-908-4490. Once you have that, you can file your return even while the fraud investigation is ongoing. Also make sure to file a police report - some states require it for identity theft cases and it strengthens your documentation trail.

Did you verify your identity on ID.me? Sometimes that helps speed things up

Code 570 is basically the IRS putting a temporary hold on your refund while they review something. With your Head of Household status, 4 exemptions, and EIC claim totaling over $11k, they're likely just doing standard verification - making sure your dependents qualify, income matches what employers reported, etc. The good news is your transcript already shows all the credits processed and ready to go once the hold lifts. Most 570 holds resolve within 2-4 weeks if everything checks out. Keep checking your transcript weekly for updates to 571 (hold released) or 846 (refund issued). Your refund amount looks solid based on what you've shared!