Has anyone dealt with this but for a larger amount? My business property had significant damage from a delivery truck ($15,000+) and they're also demanding a W9. I'm concerned that much money reported as "income" could seriously impact my taxes.

Great outcome on getting them to drop the W9 requirement! This is actually a textbook example of why it's important to understand your rights when dealing with insurance and liability claims. For anyone else facing this situation, here are a few key points to remember: 1. Property damage reimbursements that simply restore you to your previous financial position are NOT taxable income 2. Companies often have blanket W9 policies for payments over $600 without considering the nature of the payment 3. You have every right to push back and explain why a W9 isn't appropriate If you're ever in doubt, ask yourself: "Am I better off financially than before the incident?" If the answer is no (which it should be for legitimate damage claims), then it's likely not taxable income. The key is being polite but firm, and having your documentation ready to show this is genuine damage reimbursement, not some kind of payment for services or income-generating activity.

You might want to consider pursuing a Request for Taxpayer Advocate Service Assistance (Form 911) rather than immediately filing an amendment. The Internal Revenue Code section 7811 provides for expedited handling when there's an IRS error causing significant hardship. The definition of "significant hardship" includes situations where IRS procedures weren't followed correctly, which seems applicable in your case. This approach could potentially resolve your issue in 4-6 weeks rather than the 20-week amendment timeline, especially since the error originated with the IRS rather than your filing.

As someone who went through a similar situation last year, I'd strongly recommend getting everything in writing before proceeding. When the IRS agent told you there was an error on their end, did they provide you with a specific explanation of what went wrong? I've found that different agents sometimes give conflicting information, so having documentation is crucial. Also, before filing the amendment, you might want to explore the Form 911 route that Zara mentioned. I initially started the amendment process but then switched to requesting Taxpayer Advocate assistance when I realized the error was clearly on the IRS side. It saved me about 12 weeks of waiting time. One more thing - if you do proceed with the amendment, make sure to include a cover letter explaining that this amendment is being filed due to an IRS processing error, not a mistake on your original return. This can sometimes help expedite the review process.

Has anyone tried just mailing in their return when this happens? I'm having the same problem but don't want to deal with the IRS phone system at all. What's the typical processing time for paper returns these days?

I went through this exact same nightmare last year with my 3-year-old daughter. After multiple rejected e-files and hours wasted on hold, I discovered the issue was that someone had incorrectly used her SSN on their return the previous year (turned out to be a data entry error at a tax prep chain). Here's what finally worked: I called the IRS Identity Protection line at 800-908-4490 early in the morning (around 7:15 AM EST) and actually got through in about 20 minutes. The agent was able to see the duplicate SSN usage in their system and issued a temporary IP PIN over the phone that was valid for 30 days. The key is having all your documentation ready - your previous year's tax return, your child's Social Security card, birth certificate, and the rejection notice from your tax software. They'll verify your identity as the parent and can resolve it in one call. If you absolutely can't get through by phone, you can also submit Form 15227 (Application for an Identity Protection PIN) by fax to 855-807-5720, but that takes 2-3 weeks to process. The phone route is definitely faster if you can get connected. Don't give up on e-filing - mailing returns is taking 3-4 months right now and you'll be waiting forever for your refund!

Anybody know if calling the IRS helps speed things up? Been on hold for 2 hours already today

The 570 code can be really frustrating, but try not to panic yet. Since your transcript shows everything filed correctly on March 20th with no penalties or interest accruing, that's actually a good sign. The IRS is probably just doing routine verification - maybe checking your dependents since you claimed 4 exemptions as Head of Household, or matching up your W-2s. A few things that might help while you wait: - Keep checking your transcript weekly for any updates - Watch your mail for any CP05 or other notices (they usually send something within 30 days if they need info from you) - The "Where's My Refund" tool might give you more specific timeline info Most 570 holds get resolved within 4-6 weeks, especially when there's no underlying issue like yours appears to be. Since you're only about 10 days in, you're still well within the normal processing window. Hang in there! 🤞

theres a secret number to call the IRS that actually works. i got through in 15 minutes. call 800-829-0582 and use extension 652. you're welcome.

I'm going through the exact same thing! Filed January 30th, got accepted same day, and now I've got a 570 code with a March processing date. It's so stressful when you're counting on that money. From what I've been reading here, it sounds like the dates on the transcript don't really mean much - they're just administrative placeholders. The good news is that most people seem to be getting their refunds resolved within 3-4 weeks even with the 570 code. I'm trying to stop checking my transcript daily because it's driving me crazy, but it's so hard! Hang in there - sounds like we're both in the same boat and just have to wait it out.