That's really important info - thanks for pointing this out! Do you know how long after a foreclosure a lender typically waits before sending a 1099-C? I'm trying to budget and plan for the worst-case scenario.

In my experience, lenders usually issue the 1099-C in January of the year following when they make the decision to forgive the debt. However, this can vary widely. Some lenders will issue it the same year as the foreclosure, while others might wait several years. The tricky part is that the decision to forgive the debt (and thus issue a 1099-C) is separate from the decision not to pursue a deficiency judgment. A lender might not seek a deficiency judgment but still keep the debt on their books for years before officially "canceling" it and triggering the tax consequences.

This is good info, but I'm confused about how to calculate the value of assets. Do I use market value? And do I include retirement accounts and other stuff I can't easily liquidate?

Thank you for sharing your expertise! Is the 30-day appeal window strict or is there any flexibility? The notice arrived about 2 weeks ago, so we're getting close to that deadline.

The 30-day window is fairly strict, but I'd recommend filing the appeal request even if you're close to the deadline. Use Form 12203 (Request for Appeals Review) and send it via certified mail so you have proof of the date it was submitted. If you're very close to the deadline, you can also call the IRS (using whatever method works to get through) and request a brief extension to file the appeal. Sometimes they'll grant a 15-day extension, especially if you explain that you're gathering documentation and seeking professional assistance. Make sure to document who you spoke with and when. The main thing is to get something formal submitted before the deadline, even if your documentation isn't complete yet. You can supplement the appeal later with additional information.

This!! Property valuation is HUGE for gift tax purposes. We had a similar issue and hiring an independent appraiser who specialized in retrospective valuations (valuing the property as of the date of the gift) saved us thousands. The IRS will often accept a professional appraisal if it's well-documented.

Thank you everyone for the advice! I checked my IRS transcript like you suggested and it looks like my return is still being processed. I think I'll try the Claimyr route to speak with someone before filing the amendment. One question - if I do end up needing to amend, should I wait until I receive my original refund first or can I submit the amendment while the original is still processing?

Definitely wait until your original return is fully processed and you receive your refund before filing an amendment. Filing an amendment while the original is still in process creates a high risk of the two filings conflicting with each other, which can lead to significant delays or even trigger unnecessary review flags. When you call the IRS, ask them to check if they're already planning to adjust your Recovery Rebate Credit automatically. Many taxpayers are finding that the IRS is fixing these stimulus payment issues without requiring an amendment. The agent should be able to tell you if you need to amend or if they can handle it on their end.

I had the same experience with my 2019 amended return. The tool showed "received" for almost 8 months before finally updating to "adjusted." If you need a more accurate status, you'll have better luck calling and speaking with a representative. They can see more detailed status info in their system than what shows on the public tracker.

I got a 1099-MISC one year when i received a $750 checking account bonus from my bank. They specifically told me it was taxable when i signed up. But never got anything for regular credit card rewards tho.

What's the difference between an EA and a CPA? Is one better than the other for tax issues?

An EA (Enrolled Agent) specializes exclusively in taxes and is licensed directly by the IRS, while CPAs have a broader accounting background and are licensed by states. For pure tax issues, especially back taxes and IRS problems, EAs often have more specialized experience and can be more affordable. CPAs are great for complex financial situations where you need broader accounting expertise along with tax knowledge. Neither is inherently "better" - it depends on your specific needs. For straightforward back tax filing and IRS negotiations, an EA is usually sufficient and cost-effective. For business owners or people with complex investments and financial planning needs, a CPA might be worth the higher cost.

Fresh Start isn't actually a program you apply for - it's a set of policies the IRS implemented to make it easier for taxpayers to resolve tax debts. It includes expanded installment agreements, easier Offer in Compromise qualifications, and some tax lien relief. The main benefits: you can now get installment agreements with simplified procedures if you owe up to $50K (used to be much lower), and they made it easier to qualify for Offers in Compromise by changing how they calculate your ability to pay. You don't apply for "Fresh Start" specifically - you just take advantage of these more flexible options.