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I have a retired client who has a similar notice and called IRS THIRTY times and never got through to anyone. Her notice said she could not verify online (she is capable of doing so). This is terrible customer service, and I told her to contact her US rep and senators to tell them to fund the IRS so it can actually serve taxpayers. What a horrible situation for all the recipients of these notices--they're scared that their ID has been compromised and then can't reach anyone to help, all under time pressure. Unacceptable.

It seems like we tax pros and taxpayers have zero representation anymore. Somebody should have seen this coming. And these slow refunds are blowing up my phone and emails wondering where the refund is.... even though they have checked and it's being processed. This is causing even more calls to the IRS. It's awful.

It goes on line 13g of Schedule K for "Other Credits", and use code letter "O" is for backup withholding. It then flows to Sch K-1, box 13, also code "O".

"Rev Proc 2013-30 facilitates the grant of relief to late-filing entities by consolidating numerous other revenue procedures into one revenue procedure and extending relief in certain circumstances. This procedure provides guidance for relief for late: S corporation elections, Electing Small Business Trust (ESBT) elections, Qualified Subchapter S Trust (QSST) elections, Qualified Subchapter S Subsidiary (QSub) elections, and Corporate classification elections which the entity intended to take effect on the same date that the S corporation election would take effect. Generally, the relief under the revenue procedure can be granted when the entity fails to qualify solely because it failed to file the appropriate election under Subchapter S timely with the applicable IRS Campus and all returns reported income consistently as if the election was in effect. For purposes of this guidance, the “effective date” is the date the election is intended to be effective and cannot be more than 3 years and 75 days from the date relief is requested. To assist in determining if an entity qualifies for late election relief, Rev. Proc. 2013-30 includes flow charts, as well as specific guidance for each of the five categories listed above. If an entity does not qualify for relief under Rev. Proc. 2013-30, the entity may request relief by requesting a private letter ruling. The procedural requirements for requesting a letter ruling and the associated fees are described in Rev. Proc. 2021-1 PDF) (or its successor). Again, it is important to know that Rev. Proc. 2013-30 relief is only for late elections that would otherwise be valid. For example, the S election must still contain signatures from all the shareholders. Also, if there was an invalid shareholder or the corporation was not qualified during any part of the tax year, the S election is not valid for that year."

Perfectly agree. Perfectly.

If you want to seriously blame someone, blame the elected officials in DC and their appointed servants who created this situation.

"Them's" is us, except we are likely a bit smarter than to run for office in the sound bite and social media world we live in.

I tried the line on behalf of one of my clients, unfortunately that procedure is only handled by one department, to call the number on the letter.

If the IRS was aware they would be incapable of handling the incoming calls to verify taxpayer identifications, why send the notice in the first place? They have to realize the potential angst this can cause individuals...maybe that isn't taken into consideration?? Certainly, the IRS may need more funding, they may deserve more funding. With that said, it's doesn't excuse them from poorly planned and implemented initiatives. I agree, Sara...notifying your representative in this case is a prudent move. They should be made aware of the issues their constituents are dealing with. Crazy.

I have had several get the notice for either 2019 or 2020. Nothing unusual about their returns. One couple I know of ignored it (2019 return e-filed in March 2020), and they got their refund about six months or so after filing. Lucky for me, they only called me twice BEFORE they got the notice, then not at all after. /s

The federal notice is a bit different than the Virginia notice. The federal notice does give a time limit of 30 days to respond, although I don't know what happens after the thirty days. I have an older client who hasn't filed for a few years who got this notice. To do the online verification requires an email address, which he did not have. I set one up for him for this purpose. But then you have to have a credit card or mortgage as part of the verification, and he does not have that either. WIthoug that, you have to call the number given in the notice to verify your identity. We have tried three times when he was here, and could not get through to anyone any of those times. Nor could we remain on hold - we were told they were too busy and to call back another time. I don't know if or when he will get his refund so if anyone else has suggestions, please post them.

tried the pract priority line, was told too busy, call back