Pro tip: Keep checking your mail and make copies of EVERYTHING. The IRS loves to say they never got stuff even when they did lololol

I had a 922 code show up on my 2021 return and it took about 6 weeks to get the actual notice. Turned out they just wanted to verify some documents I had submitted. The whole process took about 4 months total but wasn't as scary as I thought it would be. Don't stress too much - just gather all your supporting docs now so you're ready when the letter comes!

Hey there! As someone who's also pretty new to understanding IRS transcripts and codes, I wanted to add my perspective after reading through everyone's really helpful responses. That 922 code showing "Review of unreported income" with a $0.00 balance is actually great news for you! From what I'm learning here, this code appears when the IRS runs their automated income matching system - they compare your filed return against income documents (W-2s, 1099s, etc.) that they receive throughout the year. Sometimes these documents trickle in months after you've already filed, which explains why the review happened so much later with that October 2024 date. The key thing is that $0.00 balance - it means their system found everything matched up perfectly between what you reported and what your employers/banks reported. If there was actually unreported income, you'd definitely see a balance due and probably have gotten a CP2000 notice by now. I'm also waiting on PATH to lift this Friday and have been checking my transcript constantly! But from everything I'm reading here, that closed 922 review from 2022 shouldn't affect your current year's refund processing at all. The IRS keeps different tax years separate, so you should be good to go. The fact that two IRS reps confirmed you don't owe anything just reinforces that this was routine verification that worked out in your favor. Try not to stress about it - focus on hopefully getting some good news this Friday! We're all in this waiting game together 🤞

Hey! I'm also pretty new to this whole IRS transcript world, but after reading through everyone's really detailed explanations here, I wanted to share what I've learned in case it helps other newcomers like us who might be freaking out about similar codes. That 922 code with $0.00 balance is actually proof that the IRS did their job and everything worked out perfectly in your favor! From what everyone's explaining, the IRS runs this automated income verification process where they compare your filed return against all the W-2s, 1099s, and other income documents they receive throughout the year. Sometimes these documents come in really late from slow employers or banks, which is why the review happened months after you filed. The fact that it shows $0.00 means their computer system found that everything matched up perfectly - no discrepancies, no unreported income, nothing to worry about. If there was actually a problem, you'd definitely have a balance due and would have gotten notices by now. I'm also stuck in PATH limbo waiting for Friday's update and have been checking my transcript way too obsessively 😅 But it sounds like that old 922 code from 2022 won't affect your current refund at all since the IRS processes each tax year separately. The fact that two different reps confirmed you don't owe anything just reinforces that this was routine verification that concluded in your favor. Try not to stress about it - let's focus on hopefully getting some good movement this Friday! We're all in this waiting game together and it's really helpful having this community to learn from 🤞

I'm going through this exact same situation with my single-member LLC for freelance web development! I formed it about 5 months ago but haven't landed any clients yet, and those automated IRS notices about Form 941 have been absolutely terrifying me. I was convinced I was already behind on some critical filing requirement. This thread has been such a huge relief to read through! I had no idea that the IRS automatically sends these notices to everyone with an EIN, regardless of whether you actually need to file anything. I've been losing sleep for weeks thinking I filled out my EIN application wrong or missed some important checkbox. I've been keeping track of all my startup expenses (development software licenses, business registration fees, laptop upgrades, web hosting for my portfolio) but wasn't sure if it was worth the effort since I haven't made any money yet. Learning about that potential $5,000 startup expense deduction definitely validates all the time I've spent organizing these receipts! I'm definitely going to call that IRS Business & Specialty Tax Line mentioned by so many people here to get my account updated and stop these scary notices. It's amazing how universal this confusion is among new single-member LLC owners - thank you everyone for sharing your experiences and making me realize I'm not alone in this! This community has been invaluable for understanding these complex tax situations as a first-time business owner.

I just went through this exact same situation with my single-member LLC! I formed it for my freelance marketing business about 8 months ago but haven't generated any income yet. Those automated IRS notices about Form 941 were absolutely terrifying - I was convinced I was already behind on critical tax filings before making a single dollar. This thread has been incredibly helpful! I had no idea that the IRS automatically sends these notices to anyone with an EIN, regardless of whether you actually need to file. I've been stressed for months thinking I somehow filled out my EIN application incorrectly. I've been tracking all my startup expenses (business license fees, marketing software subscriptions, laptop, professional courses) but wasn't sure if it was worthwhile with zero revenue. Reading about that $5,000 startup expense deduction makes me feel much better about staying organized with all these receipts from day one. I called that IRS Business & Specialty Tax Line mentioned throughout this thread last week and it was a game changer! The agent was super helpful and understanding - they quickly updated my account to reflect that I'm a single-member LLC with no employees and no payroll. They also confirmed I won't need to file Form 941 until I actually start paying wages to employees. The whole call took about 30 minutes including hold time, and those scary automated notices have already stopped coming. For anyone still hesitant to call - definitely do it! Having that official confirmation from the IRS has given me so much peace of mind. Now I can focus on actually building my business instead of worrying about unnecessary paperwork.

This is such a helpful thread! I'm dealing with a similar situation but with mutual fund shares that I've been holding for about 8 years. Over that time, I've received several nondividend distributions that I honestly just ignored because I didn't understand what they were. Now that I'm planning to sell some of these shares, I'm realizing I need to go back and figure out all those distributions to calculate my adjusted cost basis correctly. Does anyone know if there's a statute of limitations on how far back I need to track these adjustments? And if I can't find records of some of the older distributions, is there a way to request that information from the fund company? I'm kicking myself for not keeping better records earlier, but better late than never I guess!

This thread has been incredibly helpful! I just want to add one more tip that saved me a lot of headache - if you have multiple lots of the same stock purchased at different times, make sure you're applying the nondividend distributions correctly to each lot. The distributions typically reduce the basis of all shares you owned at the time of the distribution, not just specific lots. So if you bought 100 shares in January and another 100 shares in March, then received a nondividend distribution in June, that distribution would reduce the basis of all 200 shares proportionally. This becomes really important when you're selling only some of your shares and need to specify which lots you're selling (for tax loss harvesting or other strategies). I made the mistake of only reducing the basis on the shares I was selling, which would have been incorrect. Your broker's 1099-B won't show these per-lot adjustments, so you need to track it yourself. The IRS Publication 551 has some examples of this if you want to see the math worked out. It's a bit tedious but getting it right is worth it!

One thing nobody mentioned - if you did make excess contributions to your HSA because of Medicare enrollment timing, you can withdraw them (plus any earnings on those contributions) by your tax filing deadline without penalty. You'd just need to ask your HSA administrator for a "return of excess contributions" form.

Great question about HSA documentation! You typically don't need to coordinate directly with Medicare when requesting a return of excess contributions from your HSA provider. Your HSA administrator will usually just need you to specify which contributions were made during ineligible months and the total amount to be withdrawn. However, it's definitely smart to have your Medicare enrollment documentation handy - like your Medicare card showing your effective date or your enrollment confirmation letter. Some HSA providers might ask for this to verify the timing, especially if the excess contribution period spans multiple months. The key thing to remember is that any earnings on the excess contributions also need to be withdrawn and will be taxable as income (though not subject to the additional 20% penalty if withdrawn by the tax deadline). Your HSA provider should be able to calculate the earnings portion for you when processing the return.