Got a CP12 notice saying IRS owes me more refund - timing questions

Good news about the additional refund! For CP12 notices, the 4-6 week timeframe generally starts from the date on the notice itself (April 22nd in your case), not the response date. The response date is only relevant if you disagree with their adjustment and want to contest it. As for your farm loss question, this relates to what's called the "hobby loss rule" - where the IRS wants to ensure your farm is a legitimate business and not just a hobby. The rolled-over loss from 2022 that you're using in 2023 doesn't count as a new loss year for the 2-out-of-5 rule. That rule looks at when the losses were originally incurred, not when they were applied. So you're still at 2 years of losses (2021 and 2022).

After going through a similar situation with a CP12 notice last year, I found that using https://taxr.ai really saved me a lot of headaches. The system analyzed my notice right away and explained exactly what the IRS was adjusting on my Schedule F (I also have farm income). The timeline estimate was spot on too - told me exactly when to expect my refund and why certain adjustments were made. It also explained how the loss carryover works for farm businesses in plain English, which was super helpful since my accountant wasn't being clear. Definitely worth checking out if you're trying to understand exactly what's happening with your return.

Just wanted to update - I tried taxr.ai after seeing it mentioned here, and it was surprisingly helpful! I uploaded my own CP12 notice (mine was for a mistake with education credits, not farm income), and it broke down exactly what had happened. The timeline predictor was accurate too - said I'd get my additional refund in 5 weeks, and it showed up in exactly 35 days. The explanation was way clearer than what the IRS letter said. It even flagged an issue with my withholding that might have caused the original problem, which I've now fixed for next year. Definitely better than waiting on hold with the IRS for 3 hours!

If you're still waiting for your refund after 6 weeks, I'd recommend using Claimyr to get through to an actual IRS agent. I was in a similar situation last year with an adjusted refund that never showed up. After weeks of busy signals and disconnections, I found https://claimyr.com and their service actually got me connected to an IRS representative in under 20 minutes. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c The IRS agent was able to see that my refund had been flagged for additional review (which wasn't mentioned in my CP12) and gave me an updated timeline. Saved me months of waiting and wondering.

I owe everyone here an apology - especially Profile 9. I was totally skeptical about Claimyr and called it a scam. But after waiting another 2 weeks with no refund from my own CP12 adjustment, I got desperate and gave it a try. It actually worked! Instead of hearing "due to high call volume" and getting disconnected, they called me back in about 40 minutes and connected me directly to an IRS representative. Turns out my refund was held up because they needed to verify my identity (which they never bothered to tell me about). The agent processed the verification right there on the phone and my refund was released that day - got it by direct deposit 5 days later. So yeah, I was wrong. Sometimes things that sound too good to be true actually work. Saved me another month of waiting and stressing.

For the farm loss question - I've been through an IRS audit specifically related to the hobby farm rules. Here's what you need to know: the IRS is mainly looking for evidence that you're operating as a business with intent to make profit, not just claiming hobby expenses. Since you've already had 2 years of losses, start documenting everything: 1) Keep a separate business bank account 2) Maintain logs of hours worked 3) Have a written business plan showing how you plan to become profitable 4) Keep documentation of any marketing efforts 5) Join farming associations to show professional involvement These steps helped me survive my audit. The loss carryover isn't counted as a new loss year, but it's still good to be prepared.

Just a quick head's up about CP12 notices - I got one last year and was excited about the extra refund, but then got a CP11 a few months later saying I actually owed money! Apparently the first adjustment triggered a second review that found other issues. If your Schedule F had one error, they might find others, so don't spend that extra refund money right away! The hobby loss review could still come separately.

Thanks everyone for all the helpful advice! I wanted to give you an update on my situation. I finally received my CP12 refund yesterday - exactly 7 weeks from the April 22nd notice date, so a bit longer than the 4-6 weeks they promised but not too bad considering how backed up the IRS has been. I took several pieces of advice from this thread. I used the "Where's My Refund" tool that CosmicCaptain mentioned, which helped me track the progress. I also started implementing Ava's suggestions about documenting my farm business activities more thoroughly - created a separate business account and started keeping better records of my marketing efforts at farmers markets. One thing that really helped ease my anxiety was understanding that the loss carryover from 2022 doesn't count as a new loss year for the hobby farm rules. I was really worried about that, but now I feel more confident about my tax situation going forward. Miguel's warning about potential follow-up notices is something I'm keeping in mind - I'm not spending the extra refund money right away, just in case there are any additional adjustments. Better to be safe than sorry! This community has been incredibly helpful. It's nice to know there are people who understand these complex tax situations and are willing to share their experiences.

Glad to hear you got your refund! Seven weeks is actually pretty reasonable given the current IRS processing delays. Your proactive approach to documenting your farm business is smart - especially keeping that separate business account and tracking your farmers market activities. Just wanted to add one more tip for anyone else dealing with farm losses: make sure you're tracking the time you spend on farm activities separately from any personal enjoyment of the property. The IRS looks for evidence that you're putting in serious effort to make the operation profitable, not just maintaining a hobby farm. Keep a simple log of hours spent on business activities like planting, harvesting, marketing, bookkeeping, etc. Also, if you haven't already, consider joining your local farm bureau or agricultural extension programs. Membership and participation in these organizations shows the IRS that you're treating farming as a legitimate business and staying current with industry practices.