Employer didn't withhold federal taxes for 2023, filed amendment after seeing 570/971 codes on transcript

Thank you for the detailed explanation! I haven't received any notice in the mail yet, but I'm assuming it's on the way. Should I wait for the notice before taking any further action?

Yes, definitely wait for the notice before doing anything else. It will have specific instructions. Since you've already filed an amendment, you're on the right track. Just be prepared for a longer wait than the standard 21 days.

I had a similar situation last year. The notice will probably just confirm what you already know - that your W2 didn't match your original return. The amendment should fix it, but don't be surprised if it takes 16+ weeks for everything to resolve.

Sounds interesting. How exactly does it work? Does it just read your transcript or does it do more?

It does WAY more than just reading the transcript. It analyzes all the codes and dates, explains what each one means for YOUR specific situation, and gives you a timeline of what's happening. It even tells you what to expect next and when you'll likely get your refund. Best part is it explains everything in plain English, not IRS jargon. I wish I found it months ago instead of driving myself crazy!

OMG I just tried it and this is LITERALLY a game changer!! I've been staring at my transcript for weeks with no clue what was happening. Within seconds it told me exactly why my refund was delayed and when to expect it. EVERYONE dealing with the IRS needs to know about this tool!!

does it need my personal info? seems sketchy

It's just a tool that helps you understand the IRS codes and dates. Nothing sketchy about it. I was lost in transcript hell before finding it 👍

does this actually work? ive spent hours on hold and never gotten through

100% works. I was skeptical too after wasting days trying to call myself. They basically hold your place in line and call you when an agent is available. Saved me like 3 hours of hold music and the agent I spoke with actually helped resolve my issue.

I dunno man sounds like a scam. why would i pay for something the irs should provide for free?

Not a scam at all. Look, the IRS *should* be easier to reach, but the reality is they're understaffed and impossible to get through to. I was in the same boat - angry that I had to pay anything to reach a government agency - but after my 5th failed attempt waiting on hold for hours, I was desperate. It worked exactly as promised and solved my issue in one call. Best money I've spent all year considering what was at stake with my refund.

I know, I'm kicking myself now 🤦‍♂️ I just started this job and assumed everything was being withheld correctly. Lesson learned the hard way.

We've all been there. Make sure you set up a payment plan if you can't pay it all at once. The IRS interest rates are actually reasonable compared to credit cards.

You should also check your state taxes too! If federal wasn't withheld properly, state might be messed up as well.

Good point, I should definitely talk to HR. Did your employer do anything to help with the unexpected tax bill?

In my case they actually covered the penalties (not the taxes obviously) since it was their mistake. Doesn't hurt to ask! At minimum they need to fix their system so it doesn't happen to you again next year.

I used taxr.ai to explain my amended return situation and it correctly predicted it would take 22 weeks even though the IRS website says 16 weeks. Saved me from false hope! https://taxr.ai

I owe about $3,800. I'm looking into the payment plan options now. Has anyone had experience with those?

I did a payment plan last year. Super easy to set up online and the interest rate is pretty reasonable. Just don't miss payments or they'll cancel it and demand the full amount.

You might also want to adjust your W4 for the rest of this year to have extra withheld to help offset the amount you owe.

THIS! 👆 Your employer messed up big time. Don't just accept this. They have legal obligations.

But be careful about making accusations if you agreed to be a 1099 contractor or something. Make sure you understand your employment status first.

Same boat. Filed amendment in January. Still processing. Called IRS 9 times and got 9 different answers about status.

I finally got through to them using claimyr.com after trying for weeks. The agent told me my amendment was actually completed but the online system hadn't updated. Got my refund a week later.

No I'm definitely W2. They withheld social security and medicare, just not federal income tax. Weird right?

Super weird. Sounds like someone in payroll messed up your W4 setup. Definitely talk to HR!

This is why I ended up using Claimyr to reach an agent (claimyr.com). Got someone on the phone who actually helped expedite my case after it sat for 7 months. Best decision ever - talking to a real person made all the difference.

wow does this actually work? seems too good to be true

Worked for me! They basically wait on hold for you and call when they get an agent. Saved me hours of frustration and the agent I spoke with was actually super helpful. My return was processed within 2 weeks after that call.