Ask for a supervisor. Be polite but firm. Get their ID number. Write down everything they say. Call back later if needed. Different departments have different information. The verification department knows more than general reps. Military returns sometimes get flagged differently. There's a specific military tax hotline too.

I feel your pain! As someone who's dealt with IRS verification issues before, here's what I've learned: The inconsistent answers you're getting are unfortunately typical because different IRS departments don't always have real-time access to the same information in their systems. My suggestion would be to create an IRS online account at irs.gov if you haven't already - this will show you any official notices or verification requirements directly from their system rather than relying on phone reps who may be working with outdated info. Since your husband is deployed, make sure you have power of attorney documentation ready if you need to handle his tax matters. Also, try calling early in the morning (around 7-8 AM in your time zone) when wait times are typically shorter and you might get more experienced representatives. Document every call with date, time, and what you were told - this creates a paper trail if you need to escalate later. Hang in there - dealing with tax issues while managing military life is incredibly stressful, but this will get resolved! 💪

Has anyone actually gotten audited because of late 1099s? I'm in a similar boat but I'm worried filing them now will trigger some kind of review.

I went through this exact situation last year with 3 late 1099-NECs and can share what worked for me. First, don't let your accountant's casual attitude stop you from doing the right thing - filing late is always better than not filing at all. I was terrified about penalties too (facing $840 total), but I filed them electronically through the IRS FIRE system and included a detailed reasonable cause letter. The key points I emphasized were: 1) This was my first offense with a clean compliance history, 2) The contractors had already reported the income on their returns, 3) I was voluntarily correcting the issue without IRS contact, and 4) I had legitimate confusion about the filing requirements. The IRS approved my first-time penalty abatement request and waived all penalties. The whole process took about 6 weeks from filing to getting confirmation. No audit, no additional scrutiny - just relief that it was handled properly. My advice: file them ASAP electronically, write a sincere letter explaining your situation, and don't let fear of an audit stop you from complying. The IRS actually appreciates voluntary compliance more than you'd think.

Be careful with the limits for different types of improvements! Windows specifically have a $600 subcategory limit for 2023 (up to $1,200 in 2024-2025). This is within the overall $1,200 annual limit for most home improvements. But your pellet stove falls under a different category with a higher $2,000 annual limit. So you could potentially get: - Up to $600 for windows (30% of costs) - Up to $2,000 for the pellet stove (30% of costs) These are separate limits that don't count against each other.

Just to add some clarity on the documentation side - I work as a tax preparer and see these energy credit claims frequently. Beyond keeping receipts and manufacturer certifications, I'd strongly recommend taking photos of the actual installed items with their Energy Star labels visible, especially for windows. The IRS has been increasingly scrutinizing these credits, and having visual proof that you actually installed qualifying equipment can be invaluable if you're audited. Also, if you're doing multiple energy improvements over several years, keep a running spreadsheet tracking your cumulative credits claimed against the various annual limits - it gets complicated fast when you're dealing with carry-forwards and different credit categories. One more tip: if you're planning additional energy improvements, consider timing them strategically. Since some of these credits expire after 2032, and you have those annual limits, spreading improvements across tax years might maximize your total benefit.

Do tax software programs like TurboTax handle trust filings like 1041? This all seems really complicated.

I went through something very similar when my father passed and left a trust with just one property. The 1041 filing seems scary but it's actually pretty straightforward for simple trusts like yours. Since you're both executor and sole beneficiary, and the trust only holds the farmhouse, your 1041 will likely be quite basic. Here's what I learned: 1. You absolutely must file even if there's zero income - the IRS expects it once you have an EIN 2. Property taxes you paid are fully deductible on the 1041 3. Any maintenance or repairs you paid for are also deductible 4. Don't worry about the sale yet - you only report it in the tax year it actually closes For documentation, your bank statements showing property tax payments will be sufficient. The IRS understands that family trusts don't always have perfect recordkeeping. One tip: if you're really pressed for time, you can file for an extension (Form 7004) which gives you an extra 5.5 months. This might be worth considering given your tight deadline and the complexity of selling the property. The key is not to panic - simple trusts like yours are much more common than you think, and the IRS forms are designed to handle basic situations.

Quick question - if this turns out to be identity theft, should I file a police report too? Or is the FTC report enough?

This happened to my brother last year, but with a 1099-K from Etsy for supposedly selling $18k in merchandise. Turned out someone had created an Etsy shop using his stolen identity. The most frustrating part was that even after proving it wasn't him, the IRS computer systems still expected taxes on that income and automatically generated notices. Make sure whatever solution you use gives you physical documentation you can keep sending back every time another automated notice comes. It took about 6 months and 3 rounds of sending the same evidence package before the IRS fully resolved it in their systems.