I've been following this thread closely since I'm dealing with a similar payroll overpayment situation right now. What strikes me most is how many different companies seem to handle this incorrectly initially - it's like they have policies in place but don't understand the tax implications. One thing I wanted to add that I haven't seen mentioned yet: if you're in a state with state income taxes, make sure you understand how the repayment affects your state return too. Some states handle wage repayments differently than the federal rules, and you might need to file amended state returns or handle it differently there. Also, for anyone dealing with this across different employers (like if you left the company that overpaid you), the process gets even more complicated. You definitely want to resolve this while you're still employed there if possible, because getting cooperation from a former employer on W-2 corrections can be nearly impossible. The advice about going directly to the payroll vendor is gold - I'm definitely going to try that approach. It makes sense that they'd understand the tax compliance requirements better than HR departments who are focused on policy rather than tax law.

I just wanted to chime in as someone who works in payroll processing - the advice you're all giving is spot on, especially about going directly to the payroll vendor. I see these overpayment situations all the time, and unfortunately many HR departments don't fully understand the tax compliance requirements. Here's what I always tell people in this situation: the employer is legally required to report accurate wages to the IRS. If they don't adjust your W-2 after you repay the overpayment, they're essentially committing to the IRS that they paid you money you didn't actually receive. This creates problems for both parties and can trigger audits down the line. Most payroll vendors (ADP, Paychex, etc.) have standard procedures for handling wage repayments and W-2 corrections - it's really not complicated from a processing standpoint. The issue is usually that HR departments either don't know these procedures exist or think they're more complicated than they actually are. When you contact your payroll vendor, be specific about what you need: "wage adjustment due to overpayment repayment with corrected W-2 issuance." Use those exact terms because that's the language they use internally. And definitely get everything in writing from both your employer and the vendor about how they're going to handle it. Good luck everyone - this situation is frustrating but definitely resolvable if you know how to navigate it!

E-file if you can! Paper processing times are insane rn

For the mailing address, you'll need to check your state on the IRS website since it varies by location. But honestly, if your amended return is for 2019 or later, definitely go with e-filing through tax software - it's so much faster than paper. The processing times for mailed returns are still pretty brutal right now.

I just went through this exact same thing last month! Got the 4883C letter and immediately started panicking thinking I'd made some huge mistake on my taxes. Turns out it was because I claimed the Child and Dependent Care Credit for the first time after having my daughter, which was completely legitimate but looked different from my previous filing pattern. The verification process was actually much smoother than I expected. The IRS agent was professional and just needed to confirm some basic info from my return and ask a few identity questions. What really helped was having my Social Security card handy - they asked me to verify the last 4 digits which seems obvious but I almost didn't have it nearby. One thing I learned is that these letters are generated automatically by computer systems looking for patterns, not actual humans reviewing your return thinking you're suspicious. So don't take it personally! The agent even mentioned that they see these calls all day long and it's totally routine for them. My refund did take about 8 weeks after the verification call, but I got regular updates through the "Where's My Refund" tool online using the confirmation number they gave me. Hang in there - you'll get through this just fine!

I received a 4883C letter about 3 years ago and completely understand that initial panic! In my case, it was triggered because I had started freelancing and reported 1099 income for the first time, which created a red flag in their system since my previous returns only showed W-2 income. The verification call actually went much smoother than I anticipated. The agent was very professional and explained that these letters are generated automatically when their fraud detection algorithms notice changes in filing patterns - it's not a personal accusation of wrongdoing. They asked me questions about specific amounts on my current return, some details from my previous year's filing, and basic identity verification questions like my date of birth and previous addresses. One tip that really helped me: I created a simple checklist before calling with all the documents I might need (current return, previous return, W-2s, 1099s, Social Security card) and key information written down (previous addresses, employer names, etc.). This made the call go much faster since I wasn't scrambling to find documents while on the phone. The whole verification process took about 12 minutes once I got through to an agent. My refund was delayed by about 9 weeks after verification, but I was able to track the progress online with the confirmation number they provided. Try not to stress too much - this really is a routine process for them, and as long as your return is accurate, you'll be fine!

Don't forget about the Real Estate Professional status if you spend significant time managing your properties! If you qualify (750+ hours annually in real estate activities and more than half your working time), your real estate losses are no longer subject to the passive loss limitations. This means you could potentially deduct ALL of your losses against other income with no $25k limit or phase-out based on income. This has been a game-changer for my tax situation with my real estate LLC. Just make sure you keep EXTREMELY detailed time logs if you claim this status - the IRS scrutinizes these claims heavily.

Great question! I went through something very similar last year with my rental property LLC. One important thing to add to the excellent advice already given - make sure you're categorizing your $27,500 in repairs correctly between repairs vs. improvements. Regular repairs (like fixing plumbing issues) are fully deductible in the year incurred, but major improvements (like a new roof or HVAC system) typically need to be depreciated over time. The new roof and HVAC might be considered improvements that get depreciated over 27.5 years for residential rental property. However, there are some exceptions - if these were necessary to bring the property up to rentable condition when you first acquired it, they might be treated differently. Also, look into the "safe harbor" rules for small taxpayers - if your average annual gross receipts are $27 million or less (which applies to most individual investors), you might be able to deduct up to $10,000 per building in improvements. Since you're planning to use TurboTax, it should help guide you through these distinctions, but it's worth understanding the difference before you start. Consider keeping detailed records of what exactly was done and why - this documentation could be crucial if you're ever audited.

I'm in a very similar situation and this thread has been incredibly helpful! I filed my Form 843 back in February for FICA taxes that were incorrectly withheld from my consulting work - my client's payroll company mistakenly treated me as a W-2 employee when I should have been issued a 1099 as an independent contractor. It's now been about 4 months with zero communication from the IRS, and the refund amount is around $1,850. Like everyone else here, I've been obsessively checking my online transcripts hoping to see some sign of progress, but there's literally nothing there about Form 843 processing. What's been most frustrating is the complete lack of any tracking system. With regular tax refunds, you at least get basic status updates, but Form 843 claims just disappear into a black hole once submitted. I've tried calling the IRS twice but gave up after being on hold for hours each time. Reading through everyone's experiences here has been both reassuring and eye-opening. It's comforting to know that 6-9 month wait times seem to be the unfortunate norm right now, and that radio silence doesn't necessarily mean the paperwork was lost or rejected. But it's also concerning that there's essentially no way to get updates during this entire period. I'm definitely planning to contact the Taxpayer Advocate Service once I hit the 6-month mark if I haven't heard anything. Based on what others have shared, they seem to be the only option for getting real visibility into these claims and potentially expediting cases that have been stuck too long. Thanks to everyone for sharing your timelines - it really helps to know this is a systemic processing issue rather than something specific to individual cases!

I'm experiencing the exact same frustrating situation! Filed my Form 843 in late January for FICA taxes that were incorrectly withheld from my remote work as a technical writer. My client's payroll system automatically classified me as a W-2 employee when I should have been treated as an independent contractor, resulting in about $1,600 in incorrect FICA withholding. It's now been nearly 5 months with absolutely zero communication from the IRS. Like everyone else here, I've been checking my online transcripts monthly hoping to see any indication of progress, but there's literally nothing there about Form 843 processing. I've also tried calling the IRS customer service line twice but gave up after waiting on hold for over 2 hours each time. What's most frustrating is the complete lack of transparency in this process compared to regular tax refunds. At least with standard refunds you get basic status updates, but Form 843 claims just vanish into a bureaucratic black hole once submitted. Reading through everyone's experiences here has been both reassuring and concerning - reassuring to know that 6-9 month wait times are unfortunately normal right now, but concerning that there's essentially no recourse during this entire period. I'm definitely planning to contact the Taxpayer Advocate Service once I hit the 6-month mark if I haven't received any updates by then. Based on what others have shared, they seem to be our best option for getting real visibility into these claims and potentially expediting cases that have been stuck in processing limbo too long. Thanks to everyone for sharing their timelines and experiences - it really helps to know this is a widespread systemic issue rather than something specific to my case!