


Ask the community...
There are actually several solutions to this problem: ⢠Use exactly $0 as your prior year AGI (no decimal points) ⢠Check for a specific "did not file last year" option in your software ⢠Create an account on IRS.gov which requires identity verification but bypasses AGI issues ⢠Request an Identity Protection PIN through the IRS website ⢠File by paper as a last resort I've helped dozens of clients with this exact issue. Most software has a specific way to handle non-filers from the previous year.
I've been there. It's frustrating. Try another software. Some handle this better. I used FreeTaxUSA last year. It worked fine. They have a specific option. Don't panic. Paper filing is always an option. Just mail it in. Takes longer for refunds though. Worth trying online options first.
I had a $14,800 refund last year due to a similar situation with overtaxation on a bonus. Isn't it interesting how the withholding system treats lump sum payments as if you'll make that amount every pay period? I filed on February 10th and received my refund on March 8th - so 26 days total. The IRS did verify my identity through their online verification system, which added about a week to the process. But overall, it was smoother than I expected for such a large amount. Have you checked if you might be eligible for the identity verification online rather than by mail? That can save considerable time if your return gets flagged.
The community consensus on large refunds is that filing accuracy matters more than timing. PATH Act restrictions only apply to EITC and ACTC claims, which have a mandatory hold until mid-February regardless of when you file. For non-PATH refunds, the Discriminant Function System (DIF) scoring used by the IRS assigns higher review probability to returns with statistically unusual characteristics - large refunds being one factor but not the only one. My recommendation: file when your documentation is complete, ensure your W-2 data matches exactly what you enter, and use direct deposit for fastest processing. E-filing with complete documentation typically results in the fastest processing regardless of refund size.
I had almost the exact same situation but found a solution! Filed Jan 28th, rejected Feb 1st, refiled Feb 2nd. After 10 days of nothing, I contacted my tax preparer who suggested I check my return for common errors. Did you verify that your AGI from last year matches exactly what the IRS has on file? Did you double-check that your names match your social security cards exactly? What about your bank account info for direct deposit?
I'm probably just being paranoid, but I waited about 14 days for acceptance after resubmitting my rejected return. It seems like the IRS might be doing somewhat more thorough checks on resubmitted returns, especially for newly married couples filing jointly for the first time. There's possibly a verification process that happens behind the scenes that we don't see. In my case, everything worked out fine eventually, though the waiting was definitely stressful.
Try checking transcript at night. IRS systems update overnight. Different databases. WMR updates first. Transcript updates later. Normal process. Check account transcript. Not return transcript. Different information. Be patient. Peak filing season creates delays. Independent contractors often face additional verification. Nothing to worry about yet.
Last year I had the same thing happen - accepted February 12th, WMR said processing, but transcript showed nothing for weeks. I kept checking daily and driving myself crazy! Then I learned about cycle codes and processing patterns. Turns out my return got stuck in the identity verification queue even though I never got a letter. When I finally called on day 35, they asked me to verify my identity and then processed my return within 48 hours. The lesson I learned is that sometimes there ARE issues that need addressing but the IRS notification system doesn't always work properly.
This is an important point. The IRS verification systems operate independently from their notification systems. Identity verification holds don't always trigger letters. The system flags approximately 5-7% of returns for manual review. If your return contains Schedule C income above certain thresholds, this increases verification probability. Call if you reach day 35 with no transcript updates.
Malik Johnson
I worked a seasonal job with a tax preparation company. We saw this pattern frequently. State verification rarely triggers federal verification. They use different security systems. Most people who verify for state sail through federal processing without issues. Your transcript showing processing without 570/971 codes is a good sign. You'll likely see your refund soon.
0 coins
Isabella Ferreira
Under IRS Publication 5027, identity verification requirements are specifically tied to the Taxpayer Protection Program (TPP). Does anyone know if the TPP flags are shared between state and federal systems? Or do they maintain completely separate risk assessment protocols?
0 coins