FYI - one thing to watch out for with refinancing is if you do a cash-out refi, that can impact your capital gains calculation (though not the 2-year rule). The money you take out increases your basis adjustment, which could mean higher capital gains when you sell. For example, if you bought for $300k, did a cash-out refi and took $50k out, then sold for $400k, your capital gain wouldn't just be $100k... you'd need to adjust for that $50k you already took out.

Just wanted to chime in as someone who went through this exact scenario last year. I refinanced my home after owning it for about 20 months and was similarly worried about the capital gains exclusion timing. Can confirm that refinancing absolutely does not reset your ownership period - the IRS counts from your original purchase date when you first took title to the property. I ended up selling my home about 8 months after refinancing (so right at the 2-year mark from original purchase) and had no issues claiming the capital gains exclusion. One thing that might be helpful to keep in mind is documenting your primary residence period if you're close to the 2-year mark. I kept utility bills, voter registration, and other records showing continuous residence just to be safe, though I never needed them. The refinance actually helped in a way because all those documents clearly showed the same address throughout the process. Good luck with your timing - sounds like you'll hit your 2-year mark in about 6 months if my math is right!

I feel your pain completely! I went through this exact nightmare about 8 months ago - payments faithfully made but balance not budging, combined with the absolute impossibility of reaching anyone at the IRS by phone. It's such a helpless feeling when you're doing everything right but the system just isn't working. After reading through all the excellent advice in this thread, I wanted to add one more strategy that finally worked for me: I actually ended up faxing a detailed letter to the IRS with all my payment confirmations attached. I know it sounds old-school, but sometimes their fax system processes things faster than their phone system can handle inquiries. I sent it to the fax number listed on my payment plan documents, included my SSN, payment plan agreement number, and a clear timeline of every payment with confirmation numbers. Within 2 weeks, I got a call back from an IRS representative who had reviewed my fax and was able to identify that several of my payments had been applied to estimated tax penalties from a previous year instead of my current plan. The key was being very specific in the fax about exactly what I needed - not just "my balance isn't updating" but "I need someone to review where these specific payments were applied and ensure they're credited to the correct payment plan." It might be worth trying while you're also attempting the Tuesday 7 AM calling strategy. Sometimes having multiple approaches working simultaneously increases your chances of getting through to someone who can actually help. Don't give up - your payments are definitely in the system somewhere!

I'm so sorry you're dealing with this incredibly stressful situation! The combination of faithfully making payments that seem to vanish into thin air plus the nightmare of trying to reach someone at the IRS is absolutely maddening. You're definitely not alone in this frustration. After reading through everyone's experiences here, it's clear there are several common culprits for payment plan balance issues that you should specifically ask about when you finally get through: **Most likely scenarios:** - Payments being applied to penalties/interest first instead of principal (very common) - Payments sitting in a "suspense account" due to name or SSN discrepancies - Payments accidentally applied to the wrong tax year - Simple processing delays (can take 6-8 weeks, though 2+ months is excessive) **My recommended strategy:** 1. **First**: Request Form 4506-T to get your payment transcript - this will show exactly where each payment went 2. **Call timing**: Tuesday or Wednesday at exactly 7 AM Eastern (multiple people here have had success with this specific timing) 3. **When you get through**: Ask them to verify all your identifying information matches exactly, check for suspense accounts, and get a breakdown of payment application (principal vs penalties vs interest) The fax strategy someone mentioned is also brilliant - sending a detailed letter with all payment confirmations to the fax number on your payment plan documents. Sometimes their fax system processes inquiries faster than phone calls. Keep all your documentation organized and don't give up! Your $1,350 is definitely in the system somewhere - it's just a matter of getting the right person to track it down and apply it correctly. Every single person who has persisted with this issue has eventually gotten it resolved.

When I got my CP2000 last year, I used TurboTax to help me figure it out. Does anyone know if there's a specific section in the software that handles these notices? I'm trying to help my mom with hers now.

Yes, you'll definitely get a receipt when paying online! When you use the IRS Direct Pay system, you'll get an immediate confirmation page with a confirmation number after your payment processes. Make sure to screenshot that page and print it out - that's your official receipt. You can also have them email you the confirmation. I'd strongly recommend including a copy of that payment receipt with your response form when you mail it back. The IRS processes payments and correspondence separately, so having that documentation attached helps ensure everything gets properly connected in their system and prevents any follow-up notices claiming non-payment. Also, double-check that you're selecting the correct tax year when making the payment online - this is really important because the payment will be applied to whichever year you select. Good luck with your CP2000!

Have you tried checking the IRS2Go app? Sometimes it shows different information than the website. According to the r/IRS community wiki, the 971 code could mean several different things depending on what other codes appear with it. Do you have any other codes like 570 (refund hold) or 420 (examination/audit) on your transcript?

I'm in a very similar situation right now! Got the 971 code last week and have been checking my transcript daily. Reading through everyone's experiences here is really helpful - it sounds like most of the time it's just routine verification stuff, especially for first-time joint filers like us. I'm going to wait for the notice to arrive rather than rushing to the local office. @KylieRose thanks for the tip about checking the online account portal - I didn't know they sometimes post notices there before mailing them. Will definitely check that today!

I got a K-1 from my deceased father's estate, and it shows negative income in Box 1. Does anyone know how to handle this on my taxes? Do I get to deduct the loss?

Great question! I was in a similar situation when I first got involved with a partnership investment. Just to clarify a few key points that might help: 1) You as the individual partner don't "file" the K-1 - the partnership files Form 1065 and prepares K-1s for each partner 2) You'll receive your K-1 from the food truck partnership (they're required to send it to you by March 15th for calendar year partnerships) 3) You then use the information from your K-1 to complete various parts of your personal Form 1040 - typically Schedule E for ordinary business income/loss 4) There's no income threshold that exempts you from receiving a K-1 if you're a partner One thing to keep in mind with food truck partnerships - make sure you understand whether you're considered an "active" or "passive" partner, as this affects how losses can be deducted. If you're just a silent investor, any losses would be subject to passive activity loss rules. The partnership should handle most of the heavy lifting in terms of calculating your share of income, deductions, and credits. Your main job is making sure you report everything correctly on your personal return when you receive the K-1.