I just want to clarify something about the dates on your transcript. When you see dates like 5/30/2023 and 6/6/2023, these are cycle dates in the IRS system, not necessarily action dates. On January 17th, 2023, I had a similar situation with my 2022 return. My transcript showed codes dated January 30th, 2023, but I actually received my CP05 notice on February 3rd, 2023. The actual processing happened on March 15th, 2023, with my refund deposited on March 22nd, 2023 - so about 65 days total from the first 570 code. The key date to watch for is your cycle date - it should be a string of numbers at the top of your transcript. If that changes, it usually means your case has been updated. Thanks for sharing your situation - it helps others know what to expect!

I'm going through something similar right now! Filed 4/18, accepted 4/19, and got the 570/971 codes on my transcript last week. Haven't received the CP05 notice yet but based on what everyone's saying here, I'm probably looking at the same timeline. One thing I noticed from reading through all these responses - it seems like the people who proactively sent documentation (like Amelia mentioned) had faster processing times. I'm wondering if I should gather my W-2s and 1099s now so I'm ready to fax them once I get the actual notice? Also, for what it's worth, I've been tracking processing times on other tax forums and the current average seems to be closer to 60-75 days rather than the full 120. Still frustrating when you're counting on that money, but maybe not quite as bad as the worst-case scenario they give you on the phone. Noah, definitely look into that Plan B financing for your renovation like Jacob suggested. I learned the hard way last year to never count on tax refunds for time-sensitive expenses!

I've been through this exact same frustrating experience! The confusion stems from the fact that ID.me verification for the IRS is actually a two-part process that they don't explain well anywhere. Having an existing ID.me account is just step one - you still need to complete the IRS-specific authorization. Here's the sequence that finally worked for me: 1. Start at IRS.gov (never go to ID.me directly first) 2. Click "Sign in to your Online Account" 3. When redirected to ID.me, log in with your existing credentials 4. The crucial step: look for the authorization screen asking permission to share your verified identity with the IRS 5. Accept this authorization - this creates the actual link between the systems I was also working remotely and desperately waiting for my refund when I hit this wall. The whole thing felt like they designed it to be deliberately confusing! But once I completed that authorization step, I could finally access my account and track my refund status. The entire process took about 10 minutes once I knew the right path. It's honestly ridiculous that the IRS doesn't make this distinction clear - having the key doesn't help if no one tells you which door it opens! Hope this gets you sorted quickly so you can get your money.

I feel your pain - this ID.me/IRS verification maze is absolutely maddening! I went through the exact same thing last month and was ready to pull my hair out. The issue is that even though you have an ID.me account, you haven't completed the specific IRS authorization yet - it's like having a gym membership but still needing to check in at the front desk each time. Here's what finally worked for me (and I mean FINALLY after days of frustration): 1. Go directly to IRS.gov first - do NOT start from ID.me 2. Click "Sign in to your Online Account" 3. Let it redirect you to ID.me and log in with your existing credentials 4. Here's the crucial part everyone misses: after logging in, there will be a screen asking if you authorize the IRS to access your verified ID.me information 5. Click "Allow" or "Authorize" - this is what actually connects your ID.me verification to the IRS system The whole process took maybe 15 minutes once I figured out the right sequence. I was also working from home and counting on my refund, so I totally get the stress you're feeling. It's honestly criminal how poorly they explain this process - like they want to make it as confusing as possible to delay refunds! But once you get through that authorization step, you'll finally be able to access your account and track your refund status. Hang in there - you're closer than you think!

I went through this exact situation a few months ago! The frustrating thing is that the IRS system really does require that verification code from the letter for most refund-related identity verification. However, I found a workaround - I was able to get my account transcript online through ID.me verification (which is separate from the refund verification), and that showed me the specific reason code for why my refund was being held. Once I knew the exact issue, I called the IRS early in the morning (like 7 AM when they open) and got through in about 20 minutes instead of hours. The agent was able to expedite sending the verification letter and even gave me some of the info I needed to start gathering documents. Also, definitely check your online IRS account - sometimes the letter shows up there before it arrives in the mail. Don't give up hope, this process is annoying but it does get resolved!

I was in the exact same boat a few weeks ago! Here's what I learned: you can actually start some of the verification process without the letter by setting up ID.me through the IRS website. While you won't be able to complete the full refund verification without that specific code from the letter, you can at least get your account set up and verify your basic identity. Also, try checking your IRS online account - sometimes the verification letter appears there digitally before the physical one arrives in the mail. That's how I got my code early and was able to complete everything online. If you absolutely can't wait, the in-person route at a local IRS office is your best bet. You'll need to schedule an appointment (usually 1-2 weeks out) and bring multiple forms of ID, but they can verify you on the spot without needing the letter code. The whole process is frustrating but hang in there - once you get through verification, refunds usually process pretty quickly!

Has your uncle looked at the possibility of a 1031 exchange? If the beneficiaries are interested in reinvesting in another property, you might be able to defer the capital gains taxes.

Just wanted to add another perspective based on my experience with a similar trust situation. Make sure you get a professional appraisal of the property as of your grandmother's date of death if you haven't already. The IRS will want solid documentation of the stepped-up basis value, and having a formal appraisal from around that time (or a retroactive one) can save you headaches later. Also, don't forget about potential state tax implications - some states have their own capital gains rules that might differ from federal treatment. Since you mentioned multiple beneficiaries across potentially different states, this could get complex quickly. The timing of when your uncle decides to sell versus distribute is crucial, so definitely get professional advice before making that decision. Trust tax rates hit the top bracket at much lower income levels than individual rates, so the math really matters here depending on everyone's personal tax situations.

has anyone used turbotax to handle this scenario? im trying to do this myself without paying a cpa thousands of dollars but not sure if the software can handle this complicated passive loss + depreciation recapture situation correctly?

For the official IRS guidance you're looking for, check out IRC Section 469(g)(1)(A) which specifically addresses what happens when you dispose of your entire interest in a passive activity. This section confirms that suspended passive losses become fully deductible against any income in the year of disposition. You'll also want to review IRS Publication 925 "Passive Activity and At-Risk Rules" - particularly the section on "Disposition of an Entire Interest in a Passive Activity." This publication walks through exactly your scenario and confirms that the suspended losses can offset the depreciation recapture. Your math sounds correct - with $145K depreciation recapture and $130K suspended passive losses, you'd have about $15K net gain subject to tax. The key forms you'll need are Form 4797 for the property sale, Form 8582 to release the suspended passive losses, and potentially Schedule D for any remaining capital gain treatment. One thing to double-check: make sure all those carried-forward losses were properly reported as passive on your previous Form 8582s. If any were treated as non-passive in prior years, they won't qualify for this treatment.