Thanks for the suggestion. How long does it typically take to get help from the Taxpayer Advocate Service? Do they have the same backlog as regular IRS services?

The Taxpayer Advocate Service does have some backlog, but generally they can get to you within 1-2 weeks which is much faster than waiting for regular IRS correspondence. They prioritize cases with imminent deadlines, so if you explain you're trying to file before the deadline, they often expedite. When you contact them, be very clear that you've attempted all normal channels for obtaining your IP PIN with no success. They can often issue temporary PINs or provide alternative filing guidance.

Yes! This happened to my cousin. She filed paper without her IP PIN (after identity theft) and it took 14 months to resolve the issues it created. They froze her refund and she had to go through a whole identity verification process in person.

Yeah this happened to me too! I got the letter almost 3 weeks ago but still no payment. I ended up checking the Get My Payment tool and it showed my payment was scheduled for direct deposit on 3/19 but my bank has no record of it. Called my bank and they suggested I contact the IRS because they have no pending deposits for me.

Thanks for letting me know I'm not alone! I checked the Get My Payment tool again today and now it's showing they mailed a check on 3/21 even though I have direct deposit set up for my tax refunds. So weird and frustrating! I guess I'll just keep checking my mail. Hopefully it shows up soon - really counting on that money right now.

Economic Impact Payments are technically advance payments of a tax credit, but they aren't taxable income. You don't have to report them as income on your tax return. You will likely need to reconcile the amount on your 2025 tax return, especially if you were underpaid based on your circumstances. For example, if you had a child in 2025 that wasn't accounted for in your stimulus payment.

Do you know if the IRS is actively auditing claims right now? My brother used one of those ERC specialty firms and got almost $400k, but I'm worried he's going to end up owing it all back plus penalties.

Yes, the IRS announced earlier this year that they're significantly increasing audit activity specifically targeting ERC claims. They've actually paused processing new claims while they develop better fraud detection systems and have added staff specifically for ERC audits. If your brother used an ERC mill that made questionable eligibility determinations, he should seriously consider talking to a qualified tax professional immediately - not the firm that filed the claim. The IRS has stated they're focusing on claims that show "common indicators of non-compliance," and those $400k claims from businesses that didn't experience clear revenue drops or government shutdowns are prime targets.

This is unfortunately a common situation. Many of these ERC mills collected their fees and have now disappeared, leaving clients exposed to potential audit risk. As a tax professional, I would recommend: 1) Gather all documentation about how the firm determined you qualified. Did they provide a detailed eligibility analysis? 2) Consult with a reputable tax professional (CPA or tax attorney) who can review your specific situation and documentation. 3) If the determination was clearly improper, you might want to consider a voluntary disclosure to the IRS, though the formal program has ended. The IRS is most concerned with willful fraud. If you relied on what you believed was professional advice in good faith, that's a factor the IRS will consider, though it doesn't eliminate repayment obligation if you truly didn't qualify.

That makes sense! I noticed something similar with H&R Block software. Do you think it's safer to go with what the IRS forms calculate or what the tax software says?

In my experience, I've found that tax software like TurboTax is generally correct because it's applying all the rules comprehensively. The paper worksheets sometimes require you to go back and forth between multiple forms in a specific order, which is easy to mess up when doing it manually. If there's a significant difference though, I'd recommend double-checking your entries in the software to make sure everything is correct. Tax software can only be as accurate as the information you provide. Most major tax software is regularly updated to comply with current tax laws, so it's usually reliable if you've entered everything correctly.

That's actually really helpful! I did include my tuition costs, but I wasn't sure about some of my required course materials. Do textbooks count for the Lifetime Learning Credit? I thought those were only eligible for the American Opportunity Credit.

That's a great point I hadn't considered! My company does offer a 401k that I'm not fully maxing out yet. I'm putting in about 10% of my salary but could definitely increase that. We also have an HSA option I haven't been using. Would increasing 401k contributions now still help reduce my MAGI for the whole year, even though we're partway through 2024?

Yes, increasing your 401k contributions now will still help reduce your 2024 MAGI, even though we're partway through the year. Your MAGI calculation only looks at your total contributions for the year, not when during the year they were made. If you significantly increase your contribution percentage for the remaining months, you can make up for the lower contribution rate from earlier in the year. The HSA is another great option if you have a qualifying high-deductible health plan. The $4,150 contribution limit (for individual coverage) for 2024 comes straight off your MAGI calculation. Between maxing out your 401k and adding an HSA, you could potentially reduce your MAGI by enough to stay within the Roth contribution limits, avoiding the need to withdraw anything.

Thanks for clarifying the 5-year rule! One question though - if OP does the backdoor Roth conversion, doesn't that start a NEW 5-year clock for those converted funds? I'm trying to understand if there's any disadvantage to the backdoor approach versus direct contributions if you might need access to the money before 59.5.