I was in exactly the same position as you last month - called multiple times, different answers each time, no letters, nothing on transcripts. I was about to lose my mind compared to previous years when everything was smooth. But then suddenly last Wednesday my transcript updated and the refund hit my account Friday! No explanation, no letter, just money appearing. Hang in there - it seems like they're working through a massive backlog just like when my cousin filed during the height of COVID and waited 4 months.

I'm experiencing the exact same nightmare! Filed January 28th and it's been complete radio silence since then. What's really frustrating is that I've been filing taxes for 15 years and this has NEVER happened before. Usually I get my refund within 2-3 weeks max. I called last week and the rep told me my return was "under review" but couldn't give me any timeline or explanation of what they're reviewing. My return is straightforward - W-2, standard deduction, no major changes from last year. It's like they're treating every return as suspicious now. The worst part is not knowing if I should be worried or if this is just the new normal. Are they expecting us to just sit around indefinitely while they figure out their internal processes? At least send a letter explaining what's happening!

Tried getting one back in February. They said my hardship wasnt hard enough lmaooo 💀

I've been through this exact situation! Got a tax advocate last year when I was facing utility shutoff. The key is having solid documentation - I had to provide my shutoff notice, bank statements showing insufficient funds, and medical bills. It took about 5 weeks to get assigned an advocate, but once I did, they resolved my case in 2 weeks. The hardship criteria are strict though - "financial hardship" alone isn't enough. You need proof that waiting longer will cause significant harm. If you have eviction notices, medical emergency bills, or utility shutoffs, definitely apply. Otherwise, you might want to try other options first.

You're absolutely in the right position here - reporting income you actually received is never going to get you in trouble with the IRS, even if the payer hasn't filed their forms yet. I've seen this scenario dozens of times in my work, and the IRS consistently prioritizes catching unreported income over minor discrepancies where taxpayers over-reported. Keep your payment records (bank deposits, invoices, emails, etc.) in case you ever get a CP2000 notice asking about the discrepancy, but honestly that's unlikely since you already paid tax on the income. The company that hasn't filed their 1099-NEC is the one who could face penalties, not you. Don't amend - that just opens up your return to more scrutiny for no benefit. You did everything correctly by reporting the income when you filed.

I had this exact same situation happen to me two years ago! Filed my return with a 1099-NEC for about $3,200 in freelance income, but the company never submitted their paperwork to the IRS. I was panicking thinking I'd get audited or something, but absolutely nothing happened. The key thing everyone here is saying is true - you're protecting yourself by reporting the income. The IRS gets suspicious when people UNDER-report income, not when they over-report it. I kept all my records (invoices, payment confirmations, bank deposits) just in case, but I never even got a letter about it. The company eventually filed their 1099s about 10 months late and still nothing came of it. You did the right thing by including it on your return, so don't stress about it!

Does anyone know if there's any difference in how this works for different types of brokerage accounts? Like would the deduction rules be different for a trust account vs an individual account?

I appreciate all the detailed discussion here. One thing I want to emphasize for anyone considering this strategy is the importance of keeping meticulous records regardless of which approach you choose. If you decide to roll the interest into new loans, document everything: the original loan amount, each year's interest that gets rolled over, and the cumulative totals. Create a simple spreadsheet tracking the "investment interest basis" versus the actual loan balance. This becomes crucial not just for tax purposes, but also for your own financial planning. Also consider your broker's policies carefully. Some brokerages have restrictions on how they handle rolled-over interest or may charge fees for loan modifications that could eat into any tax benefits. I learned this the hard way when my broker charged me $50 each time I wanted to roll interest into the loan balance. The tax treatment is important, but make sure the overall financial picture (including fees, rate risks, and cash flow impact) still makes sense for your situation.

Did you claim EIC or CTC? Those returns take longer to process and might explain the delay

Same thing happened to me last year! The disconnect between WMR and transcripts is super confusing but totally normal. WMR updates first when they receive your return, but transcripts don't populate until they actually start processing it. I'd say give it another week or two - processing times have been all over the place this season. You're not alone in this!