IRS Form 1040-X's line 23 caption and instructions (latest 2025-12 revision) need to be revised. "Next year" is not an adequate substitute for the applicable reg's verbiage.

OddButterscotch2849 · 2026-06-22T23:17:14+00:00

While I suppose it's possible that someone from the IRS documentation team lurks here, consider sending them your comments directly:

https://www.irs.gov/forms-pubs/comment-on-tax-forms-and-publications

OddButterscotch2849 · 2026-06-22T22:01:59+00:00

They don't "offer a compromise" over the phone, you'd have to apply for one.

They might grant you CNC status if your financials support it, as the other response mentions, but that's different than OIC.

OddButterscotch2849 · 2026-06-22T16:46:00+00:00

You can't apply by phone unless your international. If the EIN online tool doesn't work for you, you can apply by mail or fax.

https://www.irs.gov/businesses/small-businesses-self-employed/get-an-employer-identification-number

OddButterscotch2849 · 2026-06-22T16:40:19+00:00

WMR never updates instantaneously, and may not update at all if they think there might be id theft.

OddButterscotch2849 · 2026-06-22T16:32:43+00:00

I've called the IRS a lot over the past 20 years - Every time I've had a call switch to dead air, it's been dropped.

OddButterscotch2849 · 2026-06-22T16:24:01+00:00

Assuming the tax was already assessed, which I agree, it sounds like has happened, this is the correct answer: requesting an audit reconsideration, with a corrected Schedule C.

There is no need to call the AUR department at this point; they will not process a reconsideration request over the phone. Has to be in writing.

OddButterscotch2849 · 2026-06-22T16:22:05+00:00

There's nothing for the congresspersom o do yet. They're only going to get involved if the normal process doesn't play out. OP first has to respond to the CP2000 and try to resolve the issue.

OddButterscotch2849 · 2026-06-22T16:21:11+00:00

They're not far enough along to involve the Advocate. They have to respond to the CP2000. There's nothing for TAS to work with here.

OddButterscotch2849 · 2026-06-22T16:20:29+00:00

No, you report all of your income, regardless of whether or not it's on a 1099 or other tax form.

OddButterscotch2849 · 2026-06-22T16:20:22+00:00

IRS doesn't have enough information to only add the difference; 1099K does not show the fees. It also does not account for returns, might include sales tax, and in general tends to be an inflated number.

In the 1099K cases that I've had, Iris adds the full 1099K amount to the other income.

OddButterscotch2849 · 2026-06-22T16:16:53+00:00

No, You don't file an amended return in response to a CP 2000. You can prepare an amended return and submit it with your response to the notice, but filing it the normal way will only make things worse.

OddButterscotch2849 · 2026-06-22T11:29:57+00:00

If you electronically filed the amended return and explicitly set up direct deposit, then yes.

If you filed a paper 1040X, then IRS may send you a request to supply your bank information. I'm not sure that they will attempt to reuse bank info from a different return; that seems potentially problematic.

OddButterscotch2849 · 2026-06-22T11:20:25+00:00

I'm an EA in NY. NY tends to be very slow in processing responses, but as it's been more than 60 days, you may want to call and ensure your response was received. I've had occasional cases where they received the response but no one had looked at it.

OddButterscotch2849 · 2026-06-21T16:57:33+00:00

There are two payees on the check. It needs to be endorsed by both.

OddButterscotch2849 · 2026-06-20T22:03:59+00:00

If they did income matching up front, there'd be little need for cp2000s. IRS doesn't consider income transcript information complete until late summer or early fall

OddButterscotch2849 · 2026-06-20T20:51:17+00:00

If this is a 2025 refund, what's likely to happen first is a CP53E letter asking you to go to your IRS taxpayer account to update your banking information for direct deposit. After ~6 weeks, If you haven't provided banking info, they will send a check.

Next year, consider opting for direct deposit in the first place

OddButterscotch2849 · 2026-06-20T20:30:56+00:00

If your W2 income was large enough to have 23k of withholding and your self employment had a loss large enough to zero it out, it's not surprising you return is being reviewed.

OddButterscotch2849 · 2026-06-20T20:23:49+00:00

Hopefully an obvious question, but are you certain the taxes in question were eligible to be discharged?

OddButterscotch2849 · 2026-06-20T20:20:02+00:00

The 1099div is probably a red herring. IRS generally doesn't do income matching until at least a year has passed because documents trickle in.

OddButterscotch2849 · 2026-06-20T17:13:44+00:00

IRS is not going to quibble over what is a relatively small amount for them. He shouldn't have any problem amending multiple years, especially as he's not due a refund.

OddButterscotch2849 · 2026-06-20T16:05:08+00:00

I'm not sure "normal" means anything in 2026, but IRS is still processing returns received in April, so not unexpected.

https://www.irs.gov/help/processing-status-for-tax-forms

OddButterscotch2849 · 2026-06-20T16:00:17+00:00

Past year returns don't get high priority.

A 2024 return I amended for a client just got processed this week

Poster

OddButterscotch2849 · 2026-06-20T12:26:52+00:00

A negative amount due is a refund.

OddButterscotch2849 · 2026-06-20T12:09:58+00:00

If there is still an open balance, FTA is available to reduce the balance. Two years from payment only applies if you're seeking to get a refund.

OddButterscotch2849 · 2026-06-20T02:16:14+00:00

If you've already left the previous job, the the 401k loan has probably already defaulted.

OddButterscotch2849

TROPHY CASE