My fault for sure - but strange how 941 was processed

[BulldogTom]

When I sent in my 2021 Q3 941 for my own business, I neglected to change the quarter in the top right.   It was marked as Q2 incorrectly (what a dufus mistake!).   I got a letter from the IRS last week saying they received my inquiry and they would be processing the changes to my return and in the future I need to file a 941X.   The next day I got another letter saying I have a refund coming.

The IRS processed my Q3 return as an amended 941?  Is that what they are supposed to do?  Did they treat it like a superseding return? 

I got through to the service today and it will be corrected and filed as the original Q3 return.   I need to return the check they are sending (they can't stop it from going out) and eventually everything will be fine.  I am sure there will be additional letters before it all catches up, but I am also sure it will all be adjusted eventually.  

Tom
Longview, TX 

[Lee B]

I had a monthly deposit posted in the wrong quarter in late 2020. Since I couldn't get thru on the phone, I went ahead and made another payment,

which of course resulted in an overpayment. I finally got thru on the phone about 4 months ago and got the overpayment applied to 1st quarter 20022.

It took me 5 attempts to even get into the "on hold" queue then I had to wait 45 minutes to talk to someone.

It took the IRS person,  who was very nice, at least 20 minutes hopping back and forth between systems just to apply the overpayment to 1st Quarter 2022.

Fortunately, I was able to head off the refund check that Tom is receiving.

 

[Medlin Software, Dennis]

Patience.  It will work out.  Other than the additional time you will spend, as long as deposits were timely received, there should be no problem.  Returning the check makes sense, to reduce the chance or underpayment dunning.

My customers get notices, usually referring to deposits, where something was applied incorrectly (by the employer or the IRS).  Same for forms which were never received, even though there is proof of filing/mailing/receipt.

This is one of the reasons I encourage all employers to make deposits every payroll, even if they are not required to.  If an employer needs to "use" the trust funds for operation, they need to resolve that issue anyway, or they are already on the verge of ceasing to exist. Also, to never ask for funds to be applied, always wait for a refund.  How over payments get applied can be as random as how payments get applied...  Waiting for a refund check takes zero effort.

[jklcpa]

1 hour ago, BulldogTom said:

The IRS processed my Q3 return as an amended 941?  Is that what they are supposed to do?  Did they treat it like a superseding return?

A few years ago I made that same mistake, and yes, that is exactly what the IRS did with the return I sent in too.  If you check further, you will probably find that the IRS thinks you haven't filed for the third quarter yet and should file that one asap. At least that is what I had to do.

[BulldogTom]

20 minutes ago, jklcpa said:

A few years ago I made that same mistake, and yes, that is exactly what the IRS did with the return I sent in too.  If you check further, you will probably find that the IRS thinks you haven't filed for the third quarter yet and should file that one asap. At least that is what I had to do.

The agent I spoke to said she was able to pull the "amended Q2" return and sent it for reprocessing as the Q3 original.   Hopefully they will.   She did not ask for a refiling.  She said it was a common error and they know how to fix it.  As soon as they reprocess that return as an original, timely filed return, and then match the payments up, it will be correct.   I may be dealing with this for a while, and since it WAS my fault, I won't bitch about it.  

Nice to know I am not the only one to make that mistake.   Thank you @jklcpa for making me feel like I am in good company.

Tom
Longview, TX