Who is writing all these letters from the IRS?

[mcb39]

So many letters, so early about the least little thing!  Clients are furious and afraid.  Sometimes I can fix it,(like the case where the IRS tried to draw from the wrong account); sometimes I can"t.

On the other hand, a miracle happened.  A gal came in with a return that she had attempted to do on Turbo Tax.  Married filing Separately, mind you.  It was a total mess.  Apparently TT lets you import your W2.  Well, don't try that!  Numbers were all incorrect.  She was getting a very large refund according to her return.  The IRS said NOT SO!  I did an amendment on the return and the miracle was that it was accepted on the first filing.  Actually she owes a large amount which just gets added to the payment plan that she already has active.  Reason for the MFS.  This  was a new marriage and they didn't  know  what to do.  Needless to say, she won't be trying that again.  One more reason for me to stay active for at least one more year.
 

 

[Lee B]

I efiled a Form 1120 a month ago. My client had made estimated payments of $9,600.

The corporate tax owed was $8,585 leaving a refund of $1,015, which should have been made via direct deposit.

My client just received a CP 267 letter from the IRS asking my client what they wanted them to do with the refund.

I went back and double checked the routing number and the checking account number which were all correct

 

[Abby Normal]

Was the bank account type correct (e.g., business, checking)?

[Lee B]

8 minutes ago, Abby Normal said:

Was the bank account type correct (e.g., business, checking)?

Yes

[Catherine]

It's the computers sending all the letters. No people involved - especially with the more stupid letters.

[Max W]

On 5/3/2025 at 1:20 PM, Catherine said:

It's the computers sending all the letters. No people involved - especially with the more stupid letters.

That's why it is called ACS - Automated Collection System.

[JohnH]

I have a concern that we are going to see an accelerating flood of these letters. I envision a scenario where it becomes exponentially more difficult to get human intervention (via phone or written correspondence) to resolve errors while at the same time the ACS keeps churning out notices escalating all the way up to levies. 

[Corduroy Frog]

I charge $$ for answering these letters.  Over 50% of IRS letters are totally wrong or wrong in part. 

I do charge, but somehow I can't seem to charge enough.  Clients don't understand why it takes so long to write a response, plus produce statistical information which is almost always needed.  And the clients aren't really anxious - they feel if they just file their taxes correctly once a year, and do nothing wrong, that should be enough.

[Lee B]

On 5/3/2025 at 11:50 AM, Lee B said:

I efiled a Form 1120 a month ago. My client had made estimated payments of $9,600.

The corporate tax owed was $8,585 leaving a refund of $1,015, which should have been made via direct deposit.

My client just received a CP 267 letter from the IRS asking my client what they wanted them to do with the refund.

I went back and double checked the routing number and the checking account number which were all correct

 

I just got off the phone with the IRS. A refund check will be issued in about 4 weeks.

After my initial call, I spent about 30 minutes waiting for a call back.

It took about 10 minutes to verify my client and my own identity.

It took another 10 minutes for the agent to go into another system and schedule the refund check.

He didn't know why the scheduled Direct Deposit never happened.

[mcb39]

I just had a client receive a letter saying that they cannot apply their overpayment to the next year estimates.  No reason;; no way to find  out why, no way to question the letter, no indication of further correspondence.  Now what?  I say, "Ignore!".  I checked Where's My Refund".  No refund pending.  Duh!!!

[Lee B]

Sounds somewhat like my client's letter. 

Have you seen this letter?   

More than likely it has a phone number to call.

At the end of my client's letter it said that if they didn't receive direction of what to do with the overpayment within 3 months, that a refund would be mailed to my client

[mcb39]

3 hours ago, Lee B said:

Sounds somewhat like my client's letter. 

Have you seen this letter?   

More than likely it has a phone number to call.

At the end of my client's letter it said that if they didn't receive direction of what to do with the overpayment within 3 months, that a refund would be mailed to my client

She sent it to my phone, which is always very hard for me to read.