How long would you wait to contact the IRS in this scenario

[SecondCor521]

Hi all.

I'm still working on my 2020 tax refund saga that I posted about here:

https://www.early-retirement.org/forums/f28/amended-tax-return-question-109539.html

I'm now at the point where the IRS has agreed with my corrections and sent me a notice saying I'd get my refund.

However, someone or something somehow in the Questionable Credits Department (QCD) has put a suspense on my refund. I learned this during a phone call a few weeks ago.

That agent said that the QCD folks should send me a 4800C letter, but I could upload my reply/info in advance to speed things along.

So I uploaded my reply/info in advance as that agent said I could.

How long would you wait to contact them? See poll options.

 

[NW-Bound]

Questionable Credits Department (QCD)? Uh Oh

Your poll has an entry for "I like pancakes", but lacks one for "I dislike the IRS".

 

[aja8888]

What did you upload to them? Have you received the promised 4800C letter yet?

 

[Katsmeow]

Well, it depends. I assume that to do a response they told you what the issue was that QCD had. If not then I might wait awhile (probably not 60 days) to see if you get the letter. Without the letter or information about their issue, it seems possible that your response may not address the concern. So I would try to track that down.

 

[SecondCor521]

What did you upload to them? Have you received the promised 4800C letter yet?

The agent I talked with told me the general area of concern, so I gave them what she thought they would want. The general issue was that they doubted my claim for the Premium Tax Credit on Form 8962, and she thought they would want proof of plan enrollment and premium payments, so I sent that plus my 1095As plus my 8962 plus a cover letter.

I have not received the promised 4800C letter yet. Technically I haven't even been promised one. They just said that since there was a suspense by the QCD that would be the normal next step.

The last letter I got was mid-October promising my refund would be paid in 4-6 weeks, which would have been by mid-December. I called after that time expired to see what's up and that's when I found out about the QCD department.

Well, it depends. I assume that to do a response they told you what the issue was that QCD had. If not then I might wait awhile (probably not 60 days) to see if you get the letter. Without the letter or information about their issue, it seems possible that your response may not address the concern. So I would try to track that down.

I agree it's possible my response may not address their concern.

Apparently when one calls the IRS, one can speak to *an* agent who can read my file and any notes, but it is not possible to speak directly to *the* agent who is dealing with my file.

Given that, and the general overdue-ness of my refund and the general lack of a 4800C and no promise of one forthcoming, and what seemed like reasonable advice from the agent I did speak with, I decided not to wait for the letter.

I also tried to address any possible concern they could have with my credit.

 

[PaunchyPirate]

I don’t have an answer for you, but your situation is interesting because I’m in a similar situation with my 83 year old mother. I do her taxes and stay on top of most of her finances now.

After months of waiting, On August 23, 2021 we received a letter from the IRS that they had adjusted her 2020 tax return upward from what we had filed in February. Please allow 4 to 6 weeks for your refund. Hooray!

After 14 weeks or so we still had not seen the refund. So I endured long delays and called the IRS. They looked around and said the refund was on hold for some reason. When I asked why, the agent said there are 4 possible reasons listed on her screen but none of them would mean anything to someone outside the IRS.

They said they would place a reminder on the issue which would prod the people holding it up to act on it and they had 30 days to act on it. That was 45 days ago. Still no contact from the IRS. It is beyond frustrating.

I think my next act is to fill out the paperwork to involve the IRS Customer Advocacy group and then send that in and to my Congressman. Although, I hear the IRS has started ignoring the Congressmen now.

I feel your pain. Good luck to you.

Oh, we believe the issue is related to annual problems we have had with the IRS since the 2017 filing. My Dad died that year and the IRS mistakenly killed off my Mom instead of my Dad. They’ve admitted it to us. They’ve fixed it several times. And yet it comes back every year in one way or another.

 

[SecondCor521]

Thanks PaunchyPirate.

Thankfully I'm not hard up for the money (although it's enough I'm going to keep tracking it down). And I think they'll pay me 3% interest back to 4/15/2021, which is nice (but not nice enough to not be annoyed).

Thankfully too my problem is pretty straightforward, and I mostly understand what's going on tax-wise (except the mystery of why the QCD folks decided to involve themselves with me). It's only one credit, only one tax year.

Sorry to hear about your Mom's situation.

I am tempted to get the TAS or whomever involved, but they said the fact that the IRS is super slow these days is not something that their involvement can hasten. So if the IRS doesn't listen to the taxpayer, the TAS, or Congress, then I'm not sure who they would listen to these days.

 

[Souschef]

This is from the IRS

Letter Overview

Letter 4800C is mailed to taxpayers informing them that the IRS is proposing a deficiency or disallowing a claim for refund or a credit for a subsequent period’s estimated tax.

This notice or letter may include additional topics that have not yet been covered here. Please check back frequently for updates.
​

What does this letter mean to me?

Based on the information reported to the IRS under your name and Social Security number (SSN) by employers, banks, and other payers, you may need to verify tax credits claimed, income tax withholding, or business expenses before your refund will be released or applied as an overpayment to next year’s estimated tax.
You must respond within 30 days from the date of this letter, or the proposed changes will be made to your account changing the amount of your refund. If you don’t respond within the 30 days as required, then after the suspense period, the IRS will send either a Letter 3219C, Statutory Notice of Deficiency, allowing the taxpayer 90 days to petition the Tax Court, or a Letter 0105C, Claim Disallowed, or a Letter 0106C, Claim Partially Disallowed, and will make an immediate adjustment reflecting the claim disallowance.



How did I get here?

While processing your tax return, an attempt was made to verify wages, withholding, and refundable credits, such as the Premium Tax Credit or the American Opportunity Tax Credit, that were reported to the IRS. The IRS records do not match up with the amounts you reported; therefore, the IRS is proposing adjustments to certain items on your return, e.g., your wages, withholding, and refundable credits. Adjusting your wages may also adjust your refundable credits claimed, such as the Earned Income Tax Credit or the Additional Child Tax Credit.

 

[MC Rider]

This is from the IRS

Letter Overview

Letter 4800C is mailed to taxpayers informing them that the IRS is proposing a deficiency or disallowing a claim for refund or a credit for a subsequent period’s estimated tax.

This notice or letter may include additional topics that have not yet been covered here. Please check back frequently for updates.
​

What does this letter mean to me?

Based on the information reported to the IRS under your name and Social Security number (SSN) by employers, banks, and other payers, you may need to verify tax credits claimed, income tax withholding, or business expenses before your refund will be released or applied as an overpayment to next year’s estimated tax.
You must respond within 30 days from the date of this letter, or the proposed changes will be made to your account changing the amount of your refund. If you don’t respond within the 30 days as required, then after the suspense period, the IRS will send either a Letter 3219C, Statutory Notice of Deficiency, allowing the taxpayer 90 days to petition the Tax Court, or a Letter 0105C, Claim Disallowed, or a Letter 0106C, Claim Partially Disallowed, and will make an immediate adjustment reflecting the claim disallowance.



How did I get here?

While processing your tax return, an attempt was made to verify wages, withholding, and refundable credits, such as the Premium Tax Credit or the American Opportunity Tax Credit, that were reported to the IRS. The IRS records do not match up with the amounts you reported; therefore, the IRS is proposing adjustments to certain items on your return, e.g., your wages, withholding, and refundable credits. Adjusting your wages may also adjust your refundable credits claimed, such as the Earned Income Tax Credit or the Additional Child Tax Credit.

That is some eye glazing over stuff. I'd ask my tax pro what to do.

 

[SecondCor521]

This is from the IRS

Letter Overview

Letter 4800C is mailed to taxpayers informing them that the IRS is proposing a deficiency or disallowing a claim for refund or a credit for a subsequent period’s estimated tax.

This notice or letter may include additional topics that have not yet been covered here. Please check back frequently for updates.
​

What does this letter mean to me?

Based on the information reported to the IRS under your name and Social Security number (SSN) by employers, banks, and other payers, you may need to verify tax credits claimed, income tax withholding, or business expenses before your refund will be released or applied as an overpayment to next year’s estimated tax.
You must respond within 30 days from the date of this letter, or the proposed changes will be made to your account changing the amount of your refund. If you don’t respond within the 30 days as required, then after the suspense period, the IRS will send either a Letter 3219C, Statutory Notice of Deficiency, allowing the taxpayer 90 days to petition the Tax Court, or a Letter 0105C, Claim Disallowed, or a Letter 0106C, Claim Partially Disallowed, and will make an immediate adjustment reflecting the claim disallowance.



How did I get here?

While processing your tax return, an attempt was made to verify wages, withholding, and refundable credits, such as the Premium Tax Credit or the American Opportunity Tax Credit, that were reported to the IRS. The IRS records do not match up with the amounts you reported; therefore, the IRS is proposing adjustments to certain items on your return, e.g., your wages, withholding, and refundable credits. Adjusting your wages may also adjust your refundable credits claimed, such as the Earned Income Tax Credit or the Additional Child Tax Credit.

Right.

So if I am in a 4800C situation (not clear - haven't got such a letter yet; that was just the code the agent told me to use when uploading my pre-reply), the only thing I can imagine it being is that my 8962 doesn't match my 1095-As (I had 3 in 2020 because of changes made to my coverage during the year because I had a kid go off to college that fall).

I triple checked the 1095-As against the 8962 when I submitted my original response. I had my son check my 1095-As against the 8962 at that time too. I spot checked them again with my pre-reply. Finally, the last notice from the IRS agreed with my refund amount down to the dollar (before the QCD folks decided to suspend my refund). I received that notice in mid-October. So at least part of the IRS agrees with me.

I wish I could talk with the QCD agent who is looking at my case. I'm sure that if they said, "Hey, we're concerned about your entry for September column (e) on your 8962 because it doesn't match your 8962" or whatever, I could look at it and resolve the question or issue in under 2 minutes: "Yeah, that's a typo" or "No, $463 on my 1095-A matches the $463 on my 8962". But I can't. I have to wait weeks and months and either get disconnected or wait on hold for half an hour to talk to someone who doesn't really know anything helpful and typically has no power to do anything.

And the IRS is not meeting their own timelines - the web page said I should hear back in 60 days, but the agent openly admitted it could take twice as long. If that happens, that would put their reply in mid-May 2022. For a tax return that I filed in March 2021 and corrected (yes, my error) in June 2021. And they still might disallow, and I'd get to respond to that, and then maybe Tax Court.

Sigh. Rant over for now.

 

[aja8888]

Frame of time reference

it took the IRS 3.5 years to finally agree that they lost a tax return of mine. I sent several letters, etc, most of which were never acknowledged. They finally responded to a fax of mine 8 months after I sent it. It's a Black Hole.

I still have nightmares about this.

 

[KCGeezer]

I’m in the same boat Aja. IRS just says that my 2020 return hasn’t been processed. Finally a month ago I called and at least got them to admit they had received and cashed my check for the outstanding amount due. Magically after that call, the payment for 2020 and 3 quarterly payments for 2021 showed up as receipts on their site. (Hadn’t even shown the payments on the site until I gave them the endorsement info off the back of the check).

When I asked if they wanted a new copy of the 2020 return the guy said ‘well we must have gotten it since we processed your payment, give it 12-16 weeks and check back with us’. I figure it’s up to them at this point. Not going to waste any more time worrying or chasing them about it.

 

[SecondCor521]

Pancakes is the runaway favorite in the poll.

 

[NW-Bound]

Questionable Credits Department (QCD)? Uh Oh

Your poll has an entry for "I like pancakes", but lacks one for "I dislike the IRS".

In case I gave people the wrong impression, it was a joke.

I have no gripes with the IRS. I have read that they were understaffed, and this has let a lot of tax cheaters get away with shenanigans.

 

[ducky911]

The irs is backed up 9 months on anything that takes them to be physically looked at(covid excuse). I had a resubmittal of a past tax return and thought it was lost...my cpa said to wait and sure enough the check came.

 

[Venturer]

I had a problem with my 2019 return. I received a letter about it and subsequently faxed in requested info. Then another threatening letter. I called in and after a 2 hr. hold spoke to an agent who said nothing had been received so send it again. I did thay as well and faxed my answer again. In a couple of months --same thing. This phone call though I spoke with a wonderful lady who after hearing me out gave me her direct fax number and told me to fax it all to her asap. I went to UPS store for 3rd time and faxed it all to her, and around 5:15 pm I received a phone call from her that she had corrected everything on my account and I owed nothing. That was in late November, & this past Monday I had a letter in mailbox from IRS informing me that my case had been resolved and my balance owed was $0.00 so for me at least persistence paid off finally. Good luck to you!

 

[Car-Guy]

Option 1 - (Serious) If it's a small amount just forget it. (small is relative to your situation)

Option 2 - (Joke, sort of) Don't let them push you around and demand an immediate refund and 5% interest per month

Option 3 - (Serious) Just play along with their processes and don't buck the system - but 90 days would seem long enough before prodding them again.

Option 4 - endless scenarios

 

[Bamaman]

The IRS posted online today that their processing of tax returns is going to be slow for 2021, and asked for everyone to try and file their returns earlier than normal this year.

Of course, the pandemic got'tem. And maybe some incompetence too.

You may to just have a little patience.

You can always go through a metal detector to get to a head behind a bullet proof window at the local IRS office. And most likely that person will give you a non-answer. That person in my city doesn't know much about anything.

 

[SecondCor521]

The IRS posted online today that their processing of tax returns is going to be slow for 2021, and asked for everyone to try and file their returns earlier than normal this year.

Of course, the pandemic got'tem. And maybe some incompetence too.

You may to just have a little patience.

You can always go through a metal detector to get to a head behind a bullet proof window at the local IRS office. And most likely that person will give you a non-answer. That person in my city doesn't know much about anything.

I'm sure everyone filing their returns earlier will reduce the amount of work and increase the speed and processing capability of the IRS.

They notified me of my error June 4th, 2021. I found, fixed, and replied to them on June 21st, 2021. Agreed that I am only one person, but I did my part in 17 days and they're going on seven months.

I've thought about the in-person visit and have started down that route a time or two. Lately my local office has just been completely closed.

...

The past two years my optimal tax play has resulted in a refund. I may redouble my efforts to avoid that situation given the way 2020 has turned out.

 

[tulak]

I had an issue in the 2000s that was completely my fault: I failed to enter a cost basis for company stock options that I sold. The IRS contacted me saying that I owed them a substantial amount of money. At the time I was confused, since I didn't know what I did wrong, but I was pretty sure I didn't owe anything.

Getting this resolved was not fun. What I should have done is submitted an amended schedule D showing the correct cost basis and the problem would have been solved.

Instead, I responded to them saying I didn't agree and sent them supporting documentation showing the transactions with my costs, etc. If I knew better at the time, I would have sent an updated schedule D instead of the transactions and quite possibly saved myself a lot of pain.

What happened is that many months later, I get a letter from the IRS that I agreed with them that I owe them the money and amount that I need to pay them. That irked me, since I never agreed to anything. So I called the IRS, discussed the issue with an agent who was not at all helpful. At the end, she told me to call back to the same number on Thursday at 8am and somebody will be able to help me. Seriously. I told her I didn't believe her, but she was adamant that yes, if I call back at that time somebody will be able to help me.

So I call back on Thursday at 8am and guess what? They weren't able to help me. I was not at all surprised.

I wasn't sure what to do, so I decided to go to the local IRS office and talk with someone in person. Luckily, the person I spoke to at the office knew exactly what I did wrong and the minute she told me, I had a duh! moment. Unfortunately, she said her office couldn't help me. She told me to call the IRS number again and persistently ask to speak with a supervisor.

Amazingly enough, this worked. I had somebody on the phone that was competent and knew what needed to be done. She told me to fax her a copy of my updated schedule D and once she received the copy, she'd call me back to confirm that she got it and that I would get a letter from the IRA in some number of weeks.

That solved the problem for me. Times are different today though, so I'm not sure that strategy would work. But if you are able to go in person to the IRS office, it might be worth the trip.

 

[kblagron]

I had an issue related to my divorce in 2014 where they tossed out my return because they didn't believe it. I was due quite a bit in a refund. In resolving it, I made at least 10 phone calls to the IRS, each time they saw the notes, and said they would get back to me - sometimes wanting me to send in a copy tax return again, etc. The last time - 2-1/2 years later - which was quite funny, the lady that took my call, said she needed to check it out, thought she put me on hold, but I got to hear her conversation with another IRS agent, I think he was from Buffalo. He thought I was wrong in my filing, but recommended the following:

They referred me to this IRS Tax Advocacy group, which is totally separate, he looked at my return, and said yes, it it quite clear you are due this refund, and it was all resolved. So it takes patience to make it work, but there is a 3 year deadline on getting things resolved, as I was up against that with mine.

 

[SecondCor521]

I called the IRS yesterday.

They could neither confirm nor deny receipt of my upload until the agent in that department works on my file.

They repeated that they had 120 days from the date of my submission (1/6 -> 5/6) to respond.

At this rate, I will likely receive my 2021 tax refund before I receive all of my 2020 tax refund.

I'm unable to make an appointment to visit my local IRS office because of high call volume, and of course can try back later.

 

[aja8888]

I called the IRS yesterday.

They could neither confirm nor deny receipt of my upload until the agent in that department works on my file.

They repeated that they had 120 days from the date of my submission (1/6 -> 5/6) to respond.

At this rate, I will likely receive my 2021 tax refund before I receive all of my 2020 tax refund.

I'm unable to make an appointment to visit my local IRS office because of high call volume, and of course can try back later.

Just so you know, when I was going back and forth with the IRS on the lost 2017 business tax return fiasco that took 2.5 years to resolve, after submitting documents, I typically received letters stating they are "still working" on my stuff and will add another 60 days to the review period originally stated. I got three or four of these letters over the course of the resolution. They may be still in the current "eight month review due to backlog" mode even though the computer generated letters say they have XX number of days to respond.

Sooner or later, your issue will be resolved. If you haven't gotten a penalty notice like I did ($15,000), you are still good.

Oh, and I tried to get the Tax Advocate Office locally to help me, but I could never get ANYONE to answer the phone and visiting was by appointment only. From what I could figure out, Covid had them all "working from home". And the stuff I mailed them last summer has never been acknowledged, but I do have the return receipts.

 

[SecondCor521]

Thanks, aja8888.

I vacillate between letting it be and just waiting and working on other stuff, visiting my local IRS office, and getting my Congressional representative involved.

Mostly I'm just annoyed at this point and my comments here are to vent.

 

[SecondCor521]

I spoke with the IRS this morning to try to make an appointment to visit my local IRS office. That representative basically said that the local IRS office couldn't do anything better for me than the phone representatives could. After looking at my account and recommending that I call the Questionable Credits Department again, I asked her about involving my Congressional representative.

She said that would actually speed things up. She also confirmed that they wouldn't blackball me somehow for getting Congress involved.

So I talked with my representative's office, wrote up a letter to them, signed a privacy waiver, and dropped off the paperwork at noon today. They sympathized with my plight and indicated I would at least get a progress report in the next week or so.