Reading through all these responses has been incredibly helpful - I had no idea there were so many potential avenues to explore! I was ready to just accept the loss after Fidelity's initial response, but now I'm realizing I gave up way too quickly. The Summary Plan Description approach that Lucas mentioned sounds like exactly what I need to try. If there are extended deadlines or discretionary provisions buried in the full plan documents, that could change everything. I'm also really encouraged by the success stories from people who were in nearly identical situations. I'm going to schedule a meeting with our HR person this week and come prepared with: 1. All my daycare receipts showing services from before my April departure 2. A formal request for the complete Summary Plan Description 3. Documentation of my 5-year employment history and my husband's continued employment 4. A clear timeline showing this was truly about miscommunication, not trying to bend rules The point about framing this as "administrative error" rather than just missing a deadline is so smart. And emphasizing that my husband and I stayed within annual limits and acted in good faith throughout this whole process should help demonstrate we weren't trying to game the system. Thank you all for sharing your experiences and advice - this community has given me the tools and confidence to fight for this properly. I'll definitely post an update once I hear back from HR!

I've been following this thread and wanted to add something that hasn't been mentioned yet - the IRS actually has specific guidance on dependent care FSA forfeitures that might help your case. According to IRS regulations, employers are supposed to make "reasonable efforts" to ensure employees understand plan changes, especially when it comes to deadline modifications upon termination. If your employer didn't clearly communicate the deadline change, this could actually be considered a plan administration issue rather than just a missed deadline. When you meet with HR, you might want to ask specifically what communication was provided about the FSA deadline change upon termination. If it was only mentioned in fine print or buried in exit paperwork, that could strengthen your case for an exception. Also, since your husband is still employed there, ask if the company has any written policies about how they handle FSA issues for families where one spouse remains employed. Some companies have informal flexibility for these situations to maintain good employee relations. The combination of your long employment history, your husband's continued employment, and potential communication gaps around the deadline change gives you multiple angles to work with. Don't be afraid to escalate beyond the single HR person if needed - sometimes these decisions can go up to a benefits committee or even leadership level, especially for long-term employees.

has anyone tried just reporting the box 7 amount as regular wages on their tax return? seems easier than fighting with HR for weeks...

I work in tax preparation and see this exact issue multiple times every tax season. Box 7 errors are surprisingly common, especially in larger companies with complex payroll systems. The $1,450 amount you're seeing could be from several sources that got miscoded: - Year-end bonuses or profit sharing - Overtime premium pay - Attendance bonuses - Safety incentives - Holiday pay differentials Here's what I'd recommend: First, gather all your paystubs from 2024 and look for any special payments that add up to $1,450. Second, if HR continues to ignore you, escalate to your manager or their supervisor - payroll errors affect the company's tax reporting too, so they should take it seriously. If you absolutely can't get a corrected W-2 before filing, you'll need to file Form 4852 (Substitute for Form W-2) explaining the error. But honestly, most employers will issue a W-2c once they understand the problem affects their own tax compliance. Don't give up on getting this fixed - it's worth the effort for accurate tax reporting.

Has anyone successfully gotten this tax forgiven or reduced? I'm a single parent and was self-employed in 2020 during the pandemic just trying to keep my family afloat. Now they're hitting me with this huge bill for taxes I didn't even know were deferred.

I went through this exact same situation last year! As a self-employed person, you ARE responsible for paying this because when you're self-employed, you're considered both the employer and employee for tax purposes. The "employer's share" refers to the 6.2% Social Security tax that was deferred under the CARES Act. Here's what likely happened: When you (or your tax preparer) filed your 2020 taxes, the deferral was automatically applied to reduce what you owed at that time. This was actually beneficial then, but now that deferred amount is coming due. Don't panic about the 3-week deadline - you have options! You can set up a payment plan directly with the IRS online if you can't pay the full $3,800 at once. For amounts under $50,000, you can get up to 72 months to pay it off. The setup fee is only about $31 if you do it online with automatic payments. Check your 2020 tax return (specifically Schedule SE) to confirm the deferral was taken. And definitely don't ignore this - the sooner you address it, the better your options will be. Payment plans stop most penalties from accumulating, which saves you money in the long run.

I'm dealing with this exact same issue right now! Verified my identity 3 weeks ago and still seeing that frustrating "Action Required" message. Reading through everyone's experiences here is actually really reassuring - it sounds like this is just how their system works (or doesn't work, depending on how you look at it). What's helped me stay sane is checking my transcript instead of the portal. Like others mentioned, the transcript seems to update faster and gives you actual processing codes. I can see movement there even though the portal status hasn't changed. For anyone else going through this - it seems like the key takeaway is that once you've successfully completed the identity verification (and got the confirmation), you're done. The "Action Required" is just a display issue, not something we actually need to act on. Still nerve-wracking though when you're waiting for your refund!

This is so frustrating but unfortunately very common right now. I went through the exact same thing earlier this year - verified my identity in early February and the portal kept showing "Action Required" until mid-March. The key thing to remember is that once you successfully completed the identity verification process (and hopefully got some kind of confirmation screen or reference number), you're done on your end. The "Action Required" message is basically a glitch in their system display. What helped me track actual progress was checking my tax transcript weekly instead of the portal. The transcript will show processing codes and movement even when the portal status hasn't updated. Look for codes like 971 or 570 which indicate your return is moving through their system. I know it's nerve-wracking when you need that refund for reinvestment, but try not to stress too much. Based on what I've seen here and experienced myself, most people see their accounts update within 4-6 weeks, not the full 9 weeks they quote. Hang in there!

I'm dealing with a similar situation with my grandmother's trust audit, and I found that getting documentation from the original attorney who drafted the trust was incredibly helpful. The attorney was able to provide a letter explaining the specific provisions that made it qualify as a grantor trust under IRC 671-679. If the original attorney isn't available, consider having another estate attorney review the trust document. They can provide a written opinion on whether it properly qualifies as a grantor trust during the audit period. This kind of professional documentation carries a lot of weight with IRS agents and can prevent you from having to argue the technical details yourself. Also, don't forget that you have the right to request a different agent if the current one seems unfamiliar with grantor trust rules. Sometimes a fresh perspective from another agent who specializes in trust matters can resolve the issue quickly.

You're absolutely right to be concerned about this EIN request during the audit. I went through something very similar with my late husband's trust audit two years ago, and the key is understanding the timing distinction. For the 2022 tax year when your mother-in-law was alive, if the trust properly qualified as a grantor trust, it should have been using her SSN - not an EIN. The IRS agent may be confused about the requirements or applying current post-death rules to the historical audit period. I'd recommend preparing a clear timeline showing: (1) During 2022, mother-in-law was alive and the trust was a grantor trust using her SSN, (2) After her death, the trust status changed and may now require an EIN going forward. These are two separate tax periods with different requirements. Consider requesting to speak with the agent's supervisor if they continue to insist on an EIN for the 2022 audit period. In my experience, supervisors tend to be more familiar with the nuanced grantor trust regulations. Also, document everything in writing - send a follow-up email after any phone conversations summarizing what was discussed and your position. The most important thing is not to let them pressure you into getting an EIN just to move the audit along if it wasn't required for that tax year. That could create unnecessary complications for future filings.