This is great advice, but I think you mean Form 4506-T for the transcript request, not 8962 (which is for Premium Tax Credits). The Taxpayer Advocate suggestion is gold though - they really can help with these situations!

You're absolutely right, thank you for catching that! It is Form 4506-T for requesting transcripts, not 8962. I mixed up my form numbers. The Taxpayer Advocate Service was definitely the key to resolving my case. They have more direct access to various departments and can often get answers when regular channels fail. They're especially helpful in cases like this where you have evidence the IRS actually received payment but is still sending non-filing notices.

It's a CP59 notice, and it directs us to IRS.gov and the main IRS phone number, so unfortunately I think it's legitimate. We also verified by calling the IRS directly (not using any number from the letter). I wish it was a scam - would be easier to deal with!

Yep, CP59 is definitely a legitimate IRS notice for unfiled tax returns. Good job verifying independently by calling the main IRS number. Since we're dealing with a 2020 return (filed in 2021), you should know the IRS is still working through a massive backlog from the pandemic years. Paper returns especially got backed up severely. I've seen cases where returns were sitting in trailers in IRS parking lots for months before processing. Even with the payment being processed, the physical return could have been separated or lost. Follow the advice others have given about sending a clearly marked copy with a detailed cover letter. Persistence is key with these situations!

Do you know if having a baby THIS year (after filing 2024 taxes) would still qualify us for the monthly payments? Or would we have to wait until next year's tax filing?

Based on how the 2021 CTC expansion worked, there would likely be a portal where you could update your information to add a new child born during 2025. During the previous expansion, the IRS created the "Child Tax Credit Update Portal" specifically for situations like yours. If they follow the same model, you wouldn't have to wait until next year's filing to benefit. Once you register your new child in the portal, the IRS would adjust your monthly payments accordingly. Of course, this all depends on the final bill language, but this is how they handled it previously.

From what I've read, the new bill is supposed to include "safe harbor" provisions for moderate-income families, similar to 2021. If your income increases but stays below $80,000 for single filers or $120,000 for joint filers, you'd be at least partially protected from having to repay. But if you go above those thresholds, you might have to repay.

But weren't tariffs the main source of government revenue before the income tax was created? So it's been done before, right?

Yes, tariffs were the primary federal revenue source in the 19th century, but the federal government was also tiny compared to today - no Social Security, Medicare, modern military, etc. The entire federal budget in 1900 was about $0.5 billion (adjusted for inflation, that's still less than 0.1% of today's federal budget). The global economy is also completely different now. In the 19th century, international trade was a much smaller percentage of the economy, and supply chains weren't globally integrated like they are today. Imposing massive tariffs in today's interconnected global economy would have far more significant and immediate disruptive effects than it did 150 years ago.

Tax software companies would definitely take a hit, but they'd probably pivot to helping businesses comply with the new tariff system. Companies like Intuit (TurboTax) and H&R Block are pretty good at adapting to tax changes. They might focus more on helping businesses understand import costs and tariff implications.

9 When you say "issued before 2009" - does that mean the original divorce decree or would modifications after 2009 still count? Our original divorce was in 2008 but we modified the child support arrangement in 2020.

3 It's specifically about when the original agreement about claiming dependents was executed. If your original 2008 decree included the language about who claims the child for tax purposes, that part might still be valid without Form 8332. But if that arrangement was only added in the 2020 modification, then you would need Form 8332. The key thing is that pre-2009 agreements containing "unconditional declarations" about who claims the child can sometimes serve in place of Form 8332. However, the IRS has gotten stricter about this over the years, so having the signed form is always the safest approach regardless.

11 Do you know if the form has to be signed every single year? Or can you have them sign once for multiple tax years?

That's really good to know but unfortunately I'm single so that won't help in my situation. Do you know if there's anything similar for individual filers? Like some kind of hardship exception?

There is a hardship exception you can request, but it's very specific to each type of debt. For federal student loans, you'd need to contact your loan servicer directly to request a hardship exception to the offset. They'll send you paperwork to prove extreme financial hardship. For state tax debts, you'd need to contact your state tax authority directly - each state has different criteria for hardship exceptions. Just be aware that these exceptions are pretty rare and usually require documented evidence of severe financial distress. Things like pending eviction, utility shutoffs, or medical emergencies sometimes qualify.

I did this after getting burned by an offset two years in a row. Changed my withholding so I'm just about even at tax time instead of getting a big refund. Now I put the extra amount from each paycheck into a separate savings account. Even if I still owe the debt, at least I'm controlling when and how much I pay instead of having the whole lump sum taken.