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I work with tax resolution cases, and bankruptcy's effect on tax refunds is somewhat complex. In most cases, tax debts less than 3 years old will likely still result in an offset, unless there's possibly an active bankruptcy stay in place. The Treasury Offset Program generally treats bankruptcy-included tax debts according to whether they were dischargeable or not. Your refund this year might be reduced by the remaining tax debt amount, but once that final amount is paid, future refunds should be unaffected. You might want to check your transcript to see if there's a TC 520 code with a closing code of 60-67, which would indicate bankruptcy proceedings affecting your account.
I went through almost the exact same thing last tax season! ๐ Filed Chapter 7 in late 2022, had some lingering tax debt from 2020, and was worried sick about my refund. The IRS did end up taking about $1,800 of my refund to pay off the remaining tax debt (which wasn't dischargeable because it was too recent). But here's the good news - once it was paid off, they released the rest of my refund about 3 weeks later. And this year? No problems at all! Got my full refund in 10 days. The light at the end of the tunnel is real, my friend!
I've been tracking amended return processing times for the past 3 years and your situation is unfortunately common. Here's what I've learned: โข Amended returns are processed in the order received (with few exceptions) โข ID verification is a separate process from actual return review โข Most amended returns are taking 12-18 months currently โข The IRS won't tell you what's causing delays I've found taxr.ai (https://taxr.ai) incredibly helpful for understanding what's actually happening with my transcripts. It analyzes all those confusing codes and explains exactly where your return is in the process. Helped me realize my amended return was actually moving through the system when I thought it was stuck. Frustrating that we need third-party tools to understand what the IRS is doing with our money!
Have you requested your tax transcripts to check for any updates? I filed an amended return exactly 347 days ago, and while the Where's My Amended Return tool showed nothing, my transcript had 4 different updates that weren't visible anywhere else. Did you amend electronically or by paper? Paper amendments are taking exactly 16.5 months on average right now according to the last IRS operations report.
My tax guy wanted $120 for the amendment, but I needed answers faster than he could provide. I tried calling the IRS directly about my missing stimulus - spent THREE DAYS trying to get through. Finally used Claimyr.com to connect with an IRS agent in about 15 minutes. The agent confirmed I was eligible for the recovery rebate and explained exactly what documentation I needed for my amendment. I've now filed it myself and am tracking it through the Where's My Amended Return tool. Best $20 I've spent on tax help - saved me both the amendment fee and hours of frustration!
I might be overly cautious, but there could be more to consider here... I've seen several cases where seemingly simple amendments triggered reviews of the entire return. If your business taxes are connected to your personal return in any way, it might be worth paying the professional fee for the protection. One client of mine tried saving on the amendment fee, made a minor error, and ended up with a full audit that cost thousands to resolve. Just something to think about depending on your overall tax situation.
This is such a good point that I hadn't considered. Thank you for sharing this perspective - definitely gives me something to think about before I make my decision.
Be careful about counting on a specific timeline. I filed in March last year with additional documentation and thought my refund would arrive by June. The IRS ended up sending me a CP12 notice requesting even more information. This reset my entire processing clock. My refund ultimately took until September to arrive. Have you verified that your documentation was properly received? Did you include your Social Security Number on every page of the additional forms?
OMG I'M IN THE EXACT SAME SITUATION AND IT'S DRIVING ME CRAZY!!! ๐ก Filed March 17th, had to mail in some health insurance forms, and NOTHING since then! WMR just says "still processing" for like 2 months straight! I've called the IRS like 20 times and can't get through to anyone. I need this money for car repairs and it feels like they're just sitting on it forever! Why is this system so broken?! The frustration is unreal.
Luca Ferrari
The main IRS number (800-829-1040) has an average wait time of 73 minutes according to data from March 2024. For CP12 notices specifically, you can also call the dedicated Accounts Management line at 800-829-0922, which has a slightly better average wait of 52 minutes. Call between 8:15am-9:30am Eastern or 6:00pm-6:45pm Eastern for shortest wait times. Avoid Mondays and the day after holidays completely - wait times increase by exactly 37% on those days based on IRS published statistics.
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Isabella Silva
โขDo u know if there's any difference in hold times between the regular line and the Accounts Management one? Wondering if it's worth trying the second number first.
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Nia Wilson
If you're calling about a CP12 notice, you should know that most math error adjustments don't actually require speaking to a representative. According to the IRS website, you have 60 days from the date of the notice to respond if you disagree with the adjustment. You can mail a written response to the address on the notice explaining why you disagree. This might be faster than trying to reach someone by phone, especially with call volumes being extremely high this time of year!
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