


Ask the community...
The IRS rep was kinda right but also wrong lol. The 971 itself won't stop the refund but that 570 definitely will until they resolve whatever is triggering it
Based on your transcript, the 570 code is definitely holding up your refund - it's basically a freeze on your account while they review something. The 971 notice (dated 3/3) should explain what they need to verify. Since you're HOH with $0 taxable income but claiming a large refund, they're probably just verifying your filing status and credits. The good news is your account balance shows -$8,963 which means the refund amount is there waiting to be released. Keep checking for that 846 code - once the 570 clears, you should see it pretty quickly. If you don't get the notice by mid-March or want more specific info about your timeline, taxr.ai has been super helpful for people in similar situations with these code combinations.
Has anyone used TurboTax to report a personal injury settlement? Wondering if it handles this situation well or if I should go to an actual tax preparer this year.
Congrats on the settlement! For a class action personal injury settlement like yours, the good news is that most of it will likely be tax-free under IRC Section 104(a)(2). However, you'll want to carefully review the settlement documentation to see if it breaks down different components. Key things to look for in your paperwork: - Compensation for physical injuries/medical costs (non-taxable) - Punitive damages (taxable) - Interest on the award (taxable) - Attorney fees (may affect your reporting) Since this was for defective airbags that presumably caused physical injuries, the bulk should be non-taxable. But class action settlements sometimes include punitive damage components that would be taxable. I'd recommend keeping detailed records of the settlement breakdown and consider getting professional guidance if the documentation isn't clear. Better to be certain upfront than deal with issues later during tax season!
Don't forget to get something in writing from the festival organizers! My accountant says the number one mistake people make with bartering arrangements is not having documentation of the agreement. A simple email that outlines what you'll be doing and what you're receiving in exchange can save you major headaches if you get audited. Also, save a copy of what the festival pass normally costs (screenshot of their website pricing) to document the fair market value of what you received. The IRS doesn't just take your word for these things!
This is a really helpful thread! I'm dealing with a similar situation where I'm providing DJ services at a wedding expo in exchange for booth space (valued at $300). Reading through all the advice here, it sounds like I need to report that $300 as income and can deduct my legitimate business expenses. One thing I'm still confused about - if my travel expenses end up being more than the value of what I received in the barter, can I still deduct the full amount of legitimate business expenses? Or am I limited to only deducting up to the $300 in bartering income I'm reporting? Also, has anyone had experience with the IRS questioning the "primary purpose" of a trip? I'm worried about how to prove that business was the main reason for travel when part of the arrangement involves networking at what could be seen as a social event.
ALSO make sure to check if the fake return reported any gig work (like Uber, DoorDash, etc). My niece had someone file a return showing small amounts of gig income using her SSN. Later we found out someone had created accounts with multiple gig services using her identity! We only discovered it because she tried to actually sign up for DoorDash herself and was told she already had an account. The scammer was running deliveries under her name and SSN, which generated the 1099 forms that showed up on the tax return.
This happened to my brother too! The identity thief created accounts on TaskRabbit and Instacart using his info. The worst part was that some of the gig companies wouldn't even talk to him at first because he couldn't verify he was the account holder (since the scammer had set up all the verification methods). Total nightmare to resolve.
This is absolutely frustrating and I feel for your situation. One angle that hasn't been mentioned yet is that the scammer might be using your daughter's SSN to establish a "clean" tax history before attempting larger fraud schemes. By filing a legitimate-looking return with minimal income, they create a paper trail that makes future fraudulent filings seem more credible to automated IRS systems. Another possibility is that this is connected to synthetic identity fraud - they might be combining your daughter's real SSN with fake personal information to create entirely new identities for credit applications or other financial fraud. The tax return helps validate the SSN as "active" in government systems. I'd strongly recommend requesting a Social Security earnings statement for your daughter online at ssa.gov to see if any employers have reported wages under her SSN that you don't recognize. This could reveal if someone is working under her identity beyond just the tax filing. Also, since they used your actual address, consider that someone with access to your mail or neighborhood might be involved. It's worth checking if any tax documents were mailed to your address that you didn't expect - sometimes scammers file returns hoping to intercept refund checks or IRS correspondence. The IP PIN that others mentioned is crucial - get that set up immediately for next year's filing season.
Amaya Watson
pro tip: sign up for informed delivery with usps. sometimes the check comes before the wmr updates js
0 coins
Ali Anderson
Iowa resident here! Filed Feb 3rd and still waiting on my state refund too. It's nerve-wracking when you have bills coming up. The 14-21 day timeframe SebastiΓ‘n mentioned seems pretty accurate from what I've seen others post. Hang in there - at least we don't have to deal with the PATH Act delays for state like we do with federal!
0 coins