23 Has anyone successfully disputed a 1099-C amount? The debt that was charged off in my case included a ton of late fees and interest that got tacked on after I stopped paying. Seems unfair to pay taxes on all that extra stuff they added!

I went through a similar situation last year with a charged-off credit card debt. Here's what I learned from my experience: 1) The IRS doesn't provide copies of 1099-C forms directly, but you can get a "Wage and Income Transcript" online through their website that shows all tax documents filed under your SSN. This is usually available immediately if you can verify your identity online. 2) Even if the creditor didn't send you the form, you're still legally required to report canceled debt as income if it exceeds $600. The IRS receives copies of all 1099-C forms, so they'll know about it even if you don't. 3) Before you panic about owing taxes on the full amount, definitely look into the insolvency exclusion using Form 982. If your total debts exceeded your total assets when the debt was canceled, you might not owe any taxes on it at all. 4) For legal action against the creditor - honestly, it's probably not worth pursuing. The penalties for late filing are usually minimal, and your energy is better spent getting the correct information and filing properly. I'd recommend getting that transcript ASAP and consulting with a tax professional if the amount is significant. Don't let this delay your filing - you have options even without the physical form.

Something important: MAKE COPIES OF EVERYTHING before you mail it! I sent in a late return last year and the IRS somehow lost it. Having copies saved my butt when I had to send it again. Also, if you owe money, don't forget you can set up a payment plan if the amount with penalties is too much to pay at once. You can apply for an installment agreement using Form 9465.

Just wanted to add something that might help - if you're really stressed about the penalties and interest that have accumulated since 2019, you might qualify for penalty relief under "reasonable cause" provisions. Since you mentioned your ex was handling finances and you genuinely didn't know about the unfiled return, that could potentially qualify. You'd need to include a letter explaining your circumstances when you mail your return. The IRS considers things like reliance on a tax professional or spouse, serious illness, or other circumstances beyond your control. It's worth a shot - worst case they say no, but I've seen people get penalties reduced or eliminated this way. Also, double-check that you're using your current address on the return, not your 2019 address, so any correspondence reaches you. And like others said, certified mail is absolutely essential - treat this like you're mailing something precious because basically you are!

I really appreciate everyone sharing their experiences here - it's reassuring to know this isn't an uncommon mistake! Based on what I'm reading, it sounds like while this is definitely something that needs to be fixed, it's not the end-of-the-world catastrophe I was worried it might be. A few follow-up questions as I'm processing all this great advice: 1. Should I stop my brother-in-law's payroll immediately (like this week) or wait until we have a correction plan in place? I don't want to create more complications by stopping mid-quarter. 2. For the amended returns, does anyone know roughly how long the IRS typically takes to process the refunds for overpaid payroll taxes? We could really use that money back to help with cash flow. 3. The S-Corp election option sounds interesting for the future, but given that we're already dealing with missing 2023 returns and other tax issues, I'm thinking we should probably get everything cleaned up first before making any major tax structure changes. Does that make sense? Thanks again to everyone who's taken the time to share their knowledge and experiences. This community has been incredibly helpful during what's been a pretty stressful situation!

This thread has been incredibly helpful! I'm dealing with a very similar situation with my consulting LLC where I've been paying myself W-2 wages for the past 6 months before realizing the mistake. One thing I haven't seen mentioned yet is how to handle the Social Security and Medicare credits that were earned from those incorrect W-2 wages. When we file the corrected W-2c showing zero wages, does that also eliminate the Social Security credits that were posted to my earnings record? I'm wondering if there's a way to preserve those credits since I would have been paying self-employment tax on that income anyway as a sole proprietor - just through a different mechanism. Has anyone dealt with this aspect of the correction process? Also, for those who mentioned getting professional help with the amendments - did your CPAs charge significantly more for this type of correction work compared to regular tax prep? I'm trying to budget for the cleanup costs. Thanks for all the detailed experiences shared here. It's making a stressful situation much more manageable knowing others have successfully navigated this!

I can definitely relate to your frustration! I went through the exact same situation with my 1040X filing last year. Like others have mentioned, the IRS automatically issues paper checks for ALL amended return refunds - it's just their standard policy regardless of whether you provided direct deposit information or how you filed. Your 846 code with the 3/24 date is actually excellent news! That code means your refund has been officially issued and the check was likely mailed on or around that date. You should expect to receive it within 7-14 business days from 3/24, so it could arrive any day now. The "Where's My Amended Return" tool becoming unhelpful after processing is unfortunately normal. Once the IRS processes your amendment and issues the refund, their system considers the case "complete" and stops providing tracking information. It's definitely not user-friendly from our perspective! Your IPPIN wouldn't affect any of this - that's completely separate from the refund processing system. If you don't receive your check within the next week or so (given it's now been over 2 weeks since the 3/24 date), I'd recommend calling the IRS at 800-829-1040 to verify they have your correct mailing address and confirm the check was sent. They can also start a payment trace if needed. Hang in there - based on your timeline, your check should be arriving very soon!

I completely understand your frustration! I went through this exact same situation about 6 months ago with my amended return. The lack of clear information from the IRS about their amended return policies is really maddening. Just to echo what others have said - the paper check policy for ALL 1040X refunds is absolutely standard, regardless of your direct deposit information. It caught me off guard too since my original return was direct deposited without any issues. Your 846 code with the 3/24 date is definitely a positive sign - that means your refund was processed and issued. However, since it's now been over 3 weeks from that date, I'd strongly recommend calling the IRS at 800-829-1040 to verify two things: 1) that they have your correct current address, and 2) to confirm the check was actually mailed. If you've moved in the past year or two, this is especially important. The IRS doesn't automatically receive address updates from USPS forwarding services, so there's a real possibility it could have been sent to an old address. When you call, they should be able to read you the exact address they have on file. If it turns out the check was lost or sent to the wrong address, they can start a payment trace and eventually issue a replacement. It's frustrating to have to jump through these hoops, but at least there are options to resolve it. Hope you get your refund soon!

I totally feel your stress about this! I went through the exact same thing last year and was convinced I owed the IRS money when I saw that 291 code. But here's the good news - that -$1,910.00 is actually money coming TO you! 🎉 The negative sign means it's a credit to your account, not a debt. I know it's super confusing because it's backwards from what you'd normally expect. Code 291 "Reduced or removed prior tax assessed" basically means the IRS looked at your return again (probably because of that amended return you filed in October) and said "whoops, we charged you too much tax originally." So they're correcting it in your favor! The refund freeze from March has probably been holding everything up, but once that releases you should see an 846 code appear - that's when they actually cut the check. Pro tip from this community: check your transcript every Friday morning since that's when they typically post updates. From what I've seen, it usually takes 4-6 weeks from the 291 code to getting the 846 refund code. You're definitely getting that money - just gotta wait for the IRS to work through their backlog! Keep checking and stay patient! 💰

I've been dealing with IRS transcript codes for years and can confirm that -$1,910.00 with code 291 is definitely money coming TO you! 🎉 The negative sign on IRS transcripts means it's a credit to your account - I know it's confusing because it's backwards from normal accounting. Code 291 "Reduced or removed prior tax assessed" means they reviewed your return (likely triggered by your October amended return) and found you were overcharged originally. The refund freeze from March has probably been holding things up, but once that releases you should see an 846 code appear on your transcript - that's the actual refund issuance code. Check every Friday morning for updates since that's when they typically post changes. Based on what others have shared here, expect 4-6 weeks from seeing 291 to getting 846, then 1-2 weeks for the money to hit your account. You're definitely getting that $1,910 - just need patience with IRS processing times! 💰