A client made an $8000 extension payment using Direct Pay on 5/17/21. The wife made the payment and used her social security number. The irs didn't credit the payment to their account.
Return efiled 6/6/21. Irs sends letter 7/5 saying client owes $7120. We write back with Direct Pay confirmation & proof of bank transfer. Irs sends letter 8/9 stating client now owes $7160. Client is very nervous. Client gets more nervous when they can't get through to irs on phone. For some reason, when I tell client the irs is about a year behind in opening mail, they get more nervous. Client wants to pay amount to stop further notices.
We write irs telling them if they opened and processed their mail, they wouldn't be sending us this 2nd notice; however, to end this futile process of receiving IRS notices and sending replies that go unprocessed until the IRS levies client's bank account for tax they don’t owe, here's a check. When you bother to get around to processing this and our previous correspondence and realize you screwed up, apply the $7200 overpayment to the taxpayer's 2021 account.
On 1/3/22, a mere 4.5 months from our second letter to the irs, the irs sent a letter, account transcript, and refund check for $7240. Maybe they are catching up. Or maybe this was just a lucky fluke.