Most comprehensive answer I can give based on my experience working with returns: 971 misc review means IRS needs to verify something. Could be several things: - Income verification - Credit eligibility - Identity verification - Math error check Best thing to do is: 1. Check if you got any IRS letters 2. Verify all income reported matches W2s/1099s 3. Use taxr.ai to analyze your transcript (seriously, its the best $1 youll spend) 4. If its been over 45 days, call IRS directly The system is backed up but they are working through them. Hang in there!

Code 971 can definitely be frustrating! I went through this last year and it took about 6 weeks total. The key thing is that once you see the 971, it means they're actively working on it (not just sitting in a queue). A few things that helped me: - Keep checking your transcript weekly (not daily - it won't change that often) - Make sure you have all your documents ready in case they send a letter - Don't panic if it goes past 45 days - mine took 42 days but some people wait longer The good news is that most 971 reviews resolve without any action needed from you. They're usually just verifying information automatically. Stay patient! 🤞

Dont forget the $205 application fee for OIC! I almost submitted without it which would have caused immediate rejection. Also they require the first payment with submission if ur doing periodic payment option.

Based on your numbers, I think your $6,500 offer is unfortunately too low. I went through this process myself last year with about $35k in debt and similar asset levels to yours. The IRS formula is pretty rigid - they'll look at your $8k savings + vehicle equity + future income potential. Even with exemptions for necessary transportation and living expenses, you're probably looking at needing to offer closer to $12k-15k minimum. One thing that helped me was documenting any health issues, job market limitations, or other factors that genuinely limit your future earning potential. If your business failure was due to industry-specific issues that make it unlikely you'll return to that income level, document that thoroughly. Also consider the payment timeline - they calculate differently for lump sum vs. periodic payments. Sometimes a periodic payment plan over 2 years can actually result in a lower total amount than an installment agreement over 6+ years. Run the numbers both ways before deciding. The process takes months either way, so make sure your offer is realistic from the start. A rejected OIC can actually make your situation worse by adding penalties and interest during the review period.

I had the exact same thing happen! 571 code showed up and I was panicking thinking something was wrong. Turns out it's actually a good sign - means they released whatever hold they had on your account. Mine updated to 846 (refund issued) about 10 days later. The waiting is brutal but you're probably in the home stretch now!

Had the same experience! 571 code appeared on mine about 3 weeks ago and I was stressed thinking it meant bad news. But like others said, it's actually the IRS releasing a hold on your account. Mine went from 571 to 846 in about 12 days. The transcript codes are so confusing - wish they'd just send us plain English updates instead of making us decode everything! You should see movement soon 🤞

I'm dealing with almost the exact same timeline! Filed 2/18, accepted same day, and got the dreaded "Still Being Processed" message on 3/17. Called yesterday and got the same vague "minor error" explanation with an estimated 10-week resolution timeframe. What's frustrating is that my transcript shows absolutely nothing - no error codes, no notices, just radio silence. The agent couldn't tell me if it was a math issue, document verification, or what. It's like being told your package is delayed due to "shipping reasons" - completely unhelpful. Has anyone had success getting more specific information by calling multiple times? I'm wondering if different agents have access to different levels of detail in the system.

I've been tracking these "minor error" delays extensively this season, and what you're experiencing is unfortunately becoming the norm rather than the exception. The IRS's Error Resolution System is severely backlogged - they're currently processing returns at about 60% of normal capacity due to staffing issues and system updates. Here's what I've learned from analyzing similar cases: The "minor error" designation typically falls into one of four categories based on internal processing codes - math verification (TC 290), income matching discrepancies (TC 291), dependent verification (TC 766), or random audit selection (TC 420). The fact that no correspondence has been generated yet suggests it's likely in the first two categories, which are generally resolved without taxpayer action required. Your 4/25 timeline is realistic based on current processing patterns. I'd recommend setting up an IRS online account if you haven't already - sometimes transcript updates appear there 1-2 weeks before WMR status changes. Also, document every call you make (date, time, agent reference number) in case you need to escalate to Taxpayer Advocate Services later. The silver lining? In my tracking of 200+ similar cases this season, 89% were resolved within the quoted timeframe with no reduction in refund amount. Many actually received small interest payments for the delay.

Something to watch out for - if you report the full 1099-K amount and then deduct the refund, make sure you're using the correct lines on Schedule C. I messed this up last year and my return got flagged for review because it looked like I was trying to deduct business expenses that were way out of proportion to my income. Had to send in all my documentation to prove the "expense" was actually a refunded sale. Honestly, the whole 1099-K system is a mess for casual sellers. I'm dreading when they finally implement the $600 threshold - it's going to create so many problems for people just selling used personal items.

I went through this exact same situation with eBay last year! The key thing to remember is that you absolutely need to report the 1099-K - ignoring it will likely trigger an IRS notice since they receive a copy too. Here's what worked for me: I reported the full amount from the 1099-K on Schedule C as gross receipts, then listed the $1,600 refund as "Returns and Allowances" (there's a specific line for this on Schedule C). This way, your net income correctly shows just the $250 you actually earned. Make sure you keep all documentation of the refund transaction - screenshots from eBay, your bank records showing the refund going out, anything that proves the $1,600 was fully refunded in 2024. The IRS wants to see that paper trail if they ever question it. One tip: double-check that eBay didn't also send you a summary statement showing the refunds separately. Sometimes they provide additional documentation that makes filing easier. But even without it, as long as you properly account for the refund as a return/allowance, you'll only pay taxes on your actual $250 profit.