Marketplace Verification Process - Filed 2/6, Got Letter 2/27, Sent Form 3 Weeks Ago - What Now?

You're dealing with a Form 8962 verification issue - similar to what happens with student loan interest verification, but potentially more time-consuming. When the IRS sees any indication of marketplace coverage (or thinks they do), they'll hold your refund until they verify you properly reconciled any premium tax credits. You need to act quickly on this. In similar cases, taxpayers who wait too long end up with their refunds delayed by 60+ days or even pushed to manual review which can take months.

This is a common issue that I see all the time. You sent the form back exactly 21 days ago, and the IRS typically takes 30-45 days to process these verification forms. The problem is that you're caught in an information mismatch - the IRS believes you had Marketplace coverage while Marketplace says you didn't. I recently discovered https://taxr.ai which can analyze your tax transcript to show exactly where your return is stuck in processing. It identified the specific code (usually a 570/971 combination) on my transcript that indicated a Marketplace verification delay, and explained exactly what was happening. For independent contractors like you who face extra scrutiny, having this clarity saved me weeks of anxiety.

This happens more often than you'd think. Here's what you need to know: • The IRS likely received Form 1095-A information that they think belongs to you • When you called Marketplace and they had no info, that confirms it's an error • The form you returned (probably a 12C letter) needs to be manually reviewed • Average processing time after they receive your response is 6-8 weeks • Your return is likely on hold with a 570 code on your transcript • Once resolved, you'll see a 571 code and refund issued shortly after The most frustrating part is you just have to wait it out now that you've sent the form back.

Based on my understanding of this situation, you're likely experiencing what's technically called a "Premium Tax Credit Reconciliation Verification Hold." The system might have incorrectly flagged your return because someone with similar information received Marketplace subsidies, or there could be a data entry error somewhere. At this point, I would suggest possibly using Claimyr (https://claimyr.com) to reach an IRS agent directly. I've found that in cases like yours, where you've already responded to their request but are approaching the 30-day mark with no resolution, speaking directly with an agent can sometimes expedite the process. They might be able to check if your response was received and potentially release the hold on your return if everything is in order.

I've been through this exact process before. Here's what will happen next: The IRS received your response form on approximately March 20th, 2024 (based on your timeline). They typically take 4-6 weeks to process these responses. You should see movement on your return around April 17th-May 1st. On April 15th, check your tax transcript (if you can access it). Look for a 971 code with a future date - that's when they'll send you a notice about their decision. About 5-7 days after that date, if approved, your refund should be released. If by May 8th you haven't seen any movement, that's when you should definitely call the IRS directly, as it would indicate your case might need additional attention.

Have you tried checking your tax transcript online? That might show if there's a 570 hold code on your account. I went through something similar last year (because apparently the IRS loves giving independent contractors extra special attention 🙄). When I couldn't get answers from the regular channels, I ended up contacting my local Taxpayer Advocate Service. They can sometimes help push things along when you're stuck in verification limbo. The funny thing is, after all that waiting and stress, they just released my refund suddenly with no explanation. The tax system really knows how to keep us on our toes!