I've been following this thread closely because I'm dealing with a very similar situation. The IRS processing delays are absolutely ridiculous right now - it's like they're operating with a skeleton crew while drowning in paperwork. One thing that hasn't been mentioned yet is that you might want to contact the Taxpayer Advocate Service (TAS) if this drags on much longer. They're an independent organization within the IRS that helps taxpayers resolve problems when normal channels aren't working. Since you've already been waiting 13-14 weeks for a payment to process (well beyond their stated 12-week timeframe), and you're now receiving incorrect notices, this could qualify as a "significant hardship." You can reach them at 1-877-777-4778 or submit Form 911. They have more authority to cut through the bureaucratic mess and actually get things moving. I had to use them last year for a similar issue and they were able to resolve in about 3 weeks what the regular IRS couldn't fix in 6 months. The key is documenting everything - which it sounds like you're already doing. Keep records of all your calls, the CP23 notice, proof of payment, and any written correspondence. TAS will want to see that you've made reasonable attempts to resolve this through normal channels first. Hang in there - this is unfortunately becoming the norm rather than the exception with IRS processing right now.

I'm going through almost the exact same situation right now! Made my quarterly payment back in January and it's been radio silence ever since. The IRS phone reps keep telling me "it's in the system" but nothing shows up online or on my transcripts. What's really concerning me after reading through this thread is that even when people get through to agents who can "see" the payment, it's still taking months to actually process and apply to accounts. I'm worried I'm going to get hit with a similar notice soon. The advice about the Taxpayer Advocate Service is gold - I had no idea that was even an option. Definitely going to keep that in my back pocket if this drags on much longer. The 877-777-4778 number and Form 911 could be a lifesaver. Has anyone tried making their response to these notices via certified mail? I'm wondering if that helps create a stronger paper trail or if regular mail is sufficient for the 60-day response window.

I'm a tax professional who has helped numerous clients through similar OPA system issues, and I want to reassure you that this is unfortunately very common during tax season, especially for graduate students with stipend income. The fact that you're getting an error when trying to create a new payment plan is actually strong evidence that your original plan exists and is active in the IRS system. Here's what I recommend: **Immediate steps:** 1. Try accessing your account through the main "Online Account" section at IRS.gov (not the payment plan portal) using your ID.me login. Look for "Installment Agreement" or "Payment Plan" in your account summary. 2. Make a payment through IRS Direct Pay right away, selecting "Form 1040" and "Installment Agreement" as the payment type. This demonstrates good faith compliance while you resolve the access issue. 3. Check your bank statements for a small test charge (usually $1-2) from "IRS TREAS 310" - these verification charges sometimes get stuck in the system and can cause access problems. **For resolution:** Call the Taxpayer Advocate Service at 1-877-777-4778 instead of the main IRS line. They specialize in exactly these kinds of system failures and have much shorter wait times. As a student with an inaccessible payment plan, you qualify for their assistance. **Don't panic:** Since you established the payment plan before the filing deadline, you're protected from failure-to-pay penalties even with these technical glitches. The system typically resolves these issues within 2-3 weeks. Absolutely avoid putting this on credit cards - the interest rates will be far more expensive than any IRS payment plan fees. Your plan exists; it's just a frustrating technical issue preventing access.

I'm going through the exact same situation right now! Also a grad student with a stipend that wasn't taxed properly, and I'm getting that same "unable to complete transaction" error when trying to access my OPA. Reading through all these responses has been incredibly helpful - I had no idea about the Taxpayer Advocate Service or that I should check the regular "Online Account" section instead of the payment plan portal. The tip about looking for small test charges from "IRS TREAS 310" is something I never would have thought of. What's really reassuring is hearing from multiple tax professionals and other grad students that this is a common technical issue during tax season, and that the error when trying to create a new plan actually confirms the original plan exists in their system. I was panicking thinking my plan disappeared completely. I'm definitely going to try the "View Your Account" approach first, then make a payment through Direct Pay to show good faith while I sort this out. And if those don't work, calling the Taxpayer Advocate Service sounds way more promising than sitting on hold for hours with the regular IRS line. Thanks everyone for sharing your experiences and advice - it's such a relief to know I'm not alone in dealing with this OPA system mess and that there are actual solutions that work!

Thank you everyone for the helpful comments! I'm meeting with my accountant again tomorrow with a much better understanding of what's happening. I'll ask specifically about tracking my basis and maybe get a second opinion just to be thorough. Really appreciate all the insights!

I'd also recommend asking your accountant for a copy of your K-1 Schedule K-1 analysis showing the breakdown between ordinary income, capital gains, and any special allocations. This will help you understand exactly where that $19,500 is coming from. Also, if this is your first year with partnership income, consider asking about making quarterly estimated tax payments for next year. Since partnerships don't withhold taxes like W-2 jobs do, you might owe penalties if you don't pay estimated taxes throughout 2025. Your accountant can help you calculate what to pay quarterly based on this year's partnership income. One more thing - make sure you understand the partnership agreement regarding future distributions. Some partnerships have policies about distributing enough cash to cover tax obligations, while others prioritize reinvestment. This affects your cash flow planning going forward.

Thanks for all the helpful responses everyone! Just to confirm my understanding based on what I'm reading here - since I paid $14,500 in qualified expenses and my AGI is $64,000, I would qualify for the full $2,500 AOTC. With my tax liability of $800 before credits, I would: 1. Use $800 of the credit to zero out my tax liability 2. Get $1,000 back as the refundable portion 3. Unfortunately lose the remaining $700 since it's non-refundable and I have no more tax to offset So in total I'd get $1,800 in benefit ($800 tax reduction + $1,000 refund) from the $2,500 credit. Does that sound right? Also really appreciate the clarification about the 40% rule - that explains why it's exactly $1,000 maximum refundable. TurboTax definitely didn't explain it that clearly!

This thread has been incredibly helpful! I was in almost the exact same situation last year - got overwhelmed trying to figure out the AOTC refundable portion and ended up paying a tax preparer $300 just to avoid the confusion. One thing that might help future readers: the IRS Publication 970 has a worksheet that walks through the AOTC calculation step by step, including how to figure out your refundable vs non-refundable portions. It's buried in there but once you find it, it's actually pretty straightforward. Also want to echo what others said about keeping good records of your qualified expenses. The IRS can ask for documentation up to 3 years later, so save those tuition receipts and textbook purchases! I learned this the hard way when they questioned my 2021 AOTC claim and I had to scramble to find my son's book receipts from freshman year. Great explanations from everyone - this community is so much more helpful than the IRS website sometimes!

As someone who's brand new to this community and facing this exact same W4 confusion, I can't thank everyone enough for this incredibly detailed discussion! I've been putting off updating my W4 for months because the new format seemed so intimidating compared to the old allowances system. The $4,300 per "allowance equivalent" rule that Liam shared is absolutely brilliant - it's like finally having a decoder ring for translating between the old and new systems. I was definitely tempted by the idea of claiming a fake dependent since it seemed like such an obvious solution, but reading about the potential fraud consequences and seeing all these legitimate alternatives has completely changed my approach. What really convinced me was seeing so many real success stories from people in identical situations. Isabella's example of going from owing $400 to getting a $150 refund using the $4,300 method is exactly the kind of outcome I'm hoping for. The combination of that simple rule plus Sean's "paycheck test" strategy gives me confidence that I can actually get this right without needing to become a tax expert. I'm planning to put $4,300 on line 4(b) and monitor my next few paychecks to see if I'm on track. It's such a relief to know there's a straightforward, legal way to get the withholding I want without any of the risks that come with claiming dependents I don't have. This thread has been an absolute lifesaver - thanks to everyone who shared their knowledge and experiences!

I'm so glad I found this thread! As someone who's completely new to this community and dealing with the exact same W4 confusion, this discussion has been incredibly eye-opening. Like many others here, I was definitely considering the "fake dependent" route since it seemed like such an obvious fix for getting less money withheld. But reading about the fraud risks and penalties really opened my eyes - I had no idea that could be considered willful tax evasion with potentially serious consequences. The $4,300 per "allowance equivalent" rule that Liam shared is exactly what I've been searching for. It's such a relief to have a simple, legitimate way to translate from the old system to the new one. I've been avoiding updating my W4 for months because the new format felt so overwhelming compared to just picking a number of allowances. What really gives me confidence is seeing all these real success stories from people in identical situations. The combination of the $4,300 rule plus the "paycheck test" approach Sean mentioned seems like a foolproof way to get this right without having to become a tax expert overnight. I'm planning to start with $4,300 on line 4(b) and monitor my paychecks to see how it goes. Thanks to everyone who shared their experiences and kept each other from making costly mistakes - this community is amazing for newcomers trying to navigate these confusing tax situations!