IRS Freezing Refunds for Almost a Year: Remove Sick Leave & Fuel Tax Credits to Get Your Money - My $7,674 Refund Finally Processed After Filing Amended Return
Just figured out after waiting since January that the IRS isn't releasing credits anyway. If you got sick leave credits or fuel tax credits on your account just remove them. They're holding up refunds and the IRS won't process them. Save yourself the headache and waiting time. I filed as Head of Household with 2 exemptions back in April. My Adjusted Gross Income was $20,662.00 with a Taxable Income of $0.00. My tax per return was $2,105.00 with SE Taxable Income of $1,079.00. Here's what happened with my account - it's been a nightmare since January: TRANSACTIONS CODE EXPLANATION OF TRANSACTION CYCLE DATE AMOUNT 150 Tax return filed 20241405 04-23-2024 $2,105.00 15211-431-46322-4 806 W-2 or 1099 withholding 04-16-2024 -$2,764.00 810 Refund freeze 03-08-2024 $0.00 766 Credit to your account 04-16-2024 -$8,673.00 766 Credit to your account 04-16-2024 -$8,978.00 570 Additional account action pending 04-23-2024 $0.00 971 Notice issued 04-30-2024 $0.00 571 Resolved additional account action 05-07-2024 $0.00 971 Amended tax return or claim 11-02-2024 $0.00 forwarded for processing 977 Amended return filed 11-02-2024 $0.00 33277-711-03912-4 811 Removed refund freeze 11-19-2024 $0.00 767 Reduced or removed credit to your 04-16-2024 $8,978.00 account 767 Reduced or removed credit to your 04-16-2024 $8,673.00 account 766 Credit to your account 04-16-2024 -$2,600.00 764 Earned income credit 04-16-2024 -$4,995.00 291 Reduced or removed prior tax 12-17-2024 -$2,105.00 assessed 07254-730-05812-4 846 Refund issued 12-07-2024 $8,674.38 776 Interest credited to your account 12-17-2024 -$415.38 See what happened? They initially had credits of $8,673.00 and $8,978.00 (probably the sick leave and fuel tax credits) but then removed them (code 767) months later! My refund was frozen from March until November! Then they finally just processed with my W-2 withholding and earned income credit. My ACCOUNT BALANCE is $0.00, ACCRUED INTEREST: $0.00 AS OF: Dec. 16, 2024, ACCRUED PENALTY: $0.00. They finally issued my refund on 12-07-2024 for $8,674.38 with interest of $415.38, but I had to wait almost a YEAR because of these credits that the IRS won't process. Don't make the same mistake I did - if you have these credits on your account, just remove them with an amended return. The waiting time isn't worth it.
12 comments
Zoe Papadopoulos
Tax pro here - this is partially correct but needs clarification. The IRS is heavily scrutinizing certain credits right now, especially sick leave and fuel tax credits due to high fraud rates. However, if you legitimately qualify, DO NOT remove them. Instead, ensure you have proper documentation ready.
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Andre Laurent
But ive been waiting 11 months! How is that acceptable???
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Zoe Papadopoulos
I know its frustrating, but removing legitimate credits means leaving your own money on the table. The IRS is just backed up rn 😕
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Jamal Washington
Hey everyone - if youre trying to figure out whats actually going on with your refund, check out taxr.ai. It costs $4.99 but its worth every penny. The AI reads your transcript and tells you exactly whats happening and what to do next. Way better than guessing or waiting on hold with the IRS for hours.
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Mei Wong
does it actually work? sounds to good to be true tbh
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Jamal Washington
100% works. It spotted my 570 code issue and told me exactly what documents to fax in. Got my refund 2 weeks later!
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Liam Fitzgerald
just tried it and wow 🤯 showed me why my sick leave credit was flagged and what specific form I needed. worth the 5 bucks fr fr
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PixelWarrior
in the same boat fam... filed in february and still waiting 🤡
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Amara Adebayo
Yo this is terrible advice. Don't just remove credits you qualify for! The IRS is slow af but thats YOUR money
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Giovanni Rossi
fr fr 💯 might take forever but dont give up free money
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Fatima Al-Mansour
Did anyone else get a cp08 notice? Been stuck since March smh
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Dylan Evans
yup. absolute clown show over there at the IRS 🤡
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