


Ask the community...
I'm not entirely convinced this is actually an identity verification issue. It might possibly be a more general review or possibly even an audit, which could potentially take much longer. Sometimes the frontline agents don't always have complete information about your specific case. Did they perhaps mention any specific form numbers or possibly give you any specific verification instructions? Without those details, I would be somewhat hesitant to assume it's just standard identity verification.
Trust me, it's definitely identity verification. I've been through this twice now and the pattern is always the same. The IRS has ramped up identity verification since all the pandemic fraud. What's the point of calling if you're not going to believe what the agent tells you? Have you checked your tax transcript to see if there's a 570 freeze code? Did you try the ID verify site yet? The sooner you verify, the sooner your refund processes - especially important with your divorce situation.
I've been using taxr.ai to monitor my transcript (filed 2/15) and it's been super helpful: ⢠It explained all those confusing codes on my transcript ⢠Showed me exactly where my return was in processing ⢠Predicted my refund date accurately ⢠Alerted me when my transcript updated Might be worth checking out if you're trying to make sense of all this tax stuff. My first post-divorce filing too, and it made the whole process less stressful.
According to Internal Revenue Manual 21.4.1, the IRS has a 21-day statutory period to issue refunds, but the PATH Act extends this timeline for returns claiming EITC or ACTC. I filed 2/18 and just received my deposit this morning. The IRS is currently processing early-to-mid February returns in batches, with priority given to simple returns without credits. If you filed on 2/19, you should see movement by next week at the latest, unless there are verification issues or identity concerns that require manual review.
According to IRS Publication 2043 (updated for 2024), standard processing time for electronically filed returns is 21 days, but identity verification can add 9 weeks to this timeline. Your case seems to have been expedited, which is fortunate. The IRS has stated that 90% of refunds are issued within the 21-day window, but that remaining 10% can experience significant delays due to various verification procedures.
Your transcript update indicates successful Navigation through the Refund Error Resolution System (RERS) and the Integrity Verification Operation (IVO). The DDD code 846 on your transcript means the refund has been scheduled in the Financial Management System (FMS). If you're receiving via direct deposit, the Automated Clearing House (ACH) typically processes these transactions within 24-48 hours of the DDD, though some financial institutions may place a hold.
I just went through this exact scenario with my Schedule C filing. The Qualified Business Income Deduction (QBID) under Section 199A has specific thresholds and phase-outs that might be affecting your return. My federal refund was only $42.16 this year compared to $1,875.89 last year. The state gas question is almost certainly related to your state's Motor Fuel Tax Credit, which is separate from federal deductions. Make sure you're utilizing the correct business mileage rate of 65.5 cents per mile for 2023 (up from 62.5 cents for the latter half of 2022). This knowledge saved me hundreds!
Have you considered these possibilities: ⢠Different income level putting you in another tax bracket ⢠Last year you might have had excess withholding ⢠COVID-related tax benefits expired ⢠Business expense categorization differences ⢠Missing the QBI deduction ⢠Different depreciation method this year A refund is just the government returning YOUR money they held interest-free. A smaller refund with similar tax liability just means your withholding was more accurate this year. Check your actual tax liability line on both returns - that's the number that matters, not the refund amount.
Natalie Khan
Your situation is actually better than what happened to me last year. I had 2 dependents and my refund was delayed until APRIL, while my sister who filed with no dependents got hers in 10 days. The difference is like night and day. Returns with dependents get extra scrutiny, but they DO process eventually. The system is working as designed, just not as quickly as we'd like. I'd start worrying after 60 days, not at the 30-day mark where you are now.
0 coins
Daryl Bright
Call the Taxpayer Advocate Service. They can help. They're separate from regular IRS. They handle hardship cases. Financial strain qualifies. Have your return info ready. Be specific about your needs. Document everything. The number is 877-777-4778. They might ask for Form 911. Worth trying if you need that money soon.
0 coins