IRS lost my tax return

[Phroig]

Got a letter from the IRS saying I hadn't filed my 2020 return. According to the letter, I have a credit for a tax payment. The tax was paid by a check I enclosed in the same envelope as the return! They've asked me to file again. Anybody else experience anything like this or have any advice?

 

[easysurfer]

I'm assuming you didn't efile but sent in return by old fashioned snail mail?

 

[aja8888]

They lost my business tax return in 2017 (no tax due) and didn't notify me until mid 2019 by letter. They also fined me $15,000. It took me until last November (2.5 years) of going back and forth with them until I finally got it resolved. Maybe you will be luckier than me.

 

[Dog]

Yes, the exact same thing happened to us in 2019. They cashed our check, but lost our tax return. We had to resend. We had filed by mail.

 

[MRG]

Yeah they cashed the check and lost your return, gotta love it.

Many years ago I was on a team that responded to a RFP the IRS had out. They ultimately awarded the work to nobody. From the descriptions of their legacy system it's a wonder this doesn't happen more frequently.

I'd think a big dose of patience would be helpful. Good luck.

 

[Lakedog]

Yes, the exact same thing happened to us in 2019. They cashed our check, but lost our tax return. We had to resend. We had filed by mail.

So, any penalty or issue (other than the trouble to send the return a second time)? I still do paper returns and typically plan to owe a small amount which I always pay by check with the return. I haven't had any lost return letters yet but expect the IRS is not running like a finely tuned machine of late.

 

[aja8888]

Besides those clowns losing my business tax return, they lost two of the letters I sent to them during the pandemic months (certified mail with return receipt). Response times to anything they got in their hands from me averaged 8 months after mailing (or sending faxes).

 

[Involuntary Retiree]

My 2020 tax return seems to be in the black hole of the IRS mailroom. I mailed it certified mail, return receipt requested in May, 2021. The green card that I received back showed that it had been stamped received on June 2, 2021, but the IRS has no record of my return, according to its "Where's My Refund?" website. Uncle Sam owes my about $2500. Hmmmm.

 

[aja8888]

My 2020 tax return seems to be in the black hole of the IRS mailroom. I mailed it certified mail, return receipt requested in May, 2021. The green card that I received back showed that it had been stamped received on June 2, 2021, but the IRS has no record of my return, according to its "Where's My Refund?" website. Uncle Sam owes my about $2500. Hmmmm.

I wish you luck. I was told by an IRS agent in my conversations about the lost letters, etc, that after the pandemic lockdown, the IRS had an estimated 11 million pieces of mail stacked up to go through.

 

[athena53]

My 2020 tax return seems to be in the black hole of the IRS mailroom. I mailed it certified mail, return receipt requested in May, 2021. The green card that I received back showed that it had been stamped received on June 2, 2021, but the IRS has no record of my return, according to its "Where's My Refund?" website. Uncle Sam owes my about $2500. Hmmmm.

I was in a similar position and owed an even bigger refund. "They" tell you be patient and not to jump the gun and file electronically. My brother, recently retired as a tax partner in a medium-sized firm, told me to file electronically. I got the refund a few weeks later. I have no idea if they ever opened up the paper one. YMMV.

 

[Jerry1]

I do a few returns. In 2020, for 2019, I did some for a friend’s two kids. Easy returns. But, because I had used my five Turbo Tax eFiles and I didn’t want to charge him anything, I had him send them in. It took awhile, but they finally got their refunds. It was a relief.

Others have mentioned, but never send anything to the IRS that isn’t tracked (return receipt). They’ve never been especially good at handling paperwork and now, with COVID, forget it. And, definitely keep a hard copy (exact xerox copy) of what you send them.

 

[ksr]

In 2017 I mailed a paper 2016 tax return for my deceased father (I was handling the estate). I enclosed a check for the amount owed, and the check was cashed.

Months later I was notified that the IRS never received the return. I had a number to call and spoke to someone in the office who acknowledged that they received and cashed the check but had no record of the return. He was pleasant enough, but basically said there was nothing they could do to find the return. I just re-sent copies of the return with a letter documenting the situation, and that was the end of it.

 

[jebmke]

They once lost my entire file after 1.5 years of back and forth correspondence on a CP letter. I ended up providing them a copy of the entire file and starting over on the discussions about the CP letter.

I recommend always e-file if you can. Always owe if you can. Pay separately (EFTPS or Direct Pay) rather than by check or direct debit (codes on the return).

 

[Dtail]

Well still waiting for my 2020 refund filed last April.

 

[John Galt III]

Wow. How can so many returns just be 'lost'? After they are in the care of the IRS, not the USPS. Maybe those returns are being tossed into a big bin labeled 'lost for now, process later', lol.

 

[aja8888]

Wow. How can so many returns just be 'lost'? After they are in the care of the IRS, not the USPS. Maybe those returns are being tossed into a big bin labeled 'lost for now, process later', lol.

One of the agents I spoke with during my 2.5 year adventure on the lost return and the letters no one is reading told me that my "letters" are probably in a room "in the other building" with "millions" of others and may never be read. I kid you not.

 

[John Galt III]

Well still waiting for my 2020 refund filed last April.

There is hope. I finally got my refund for 2020 in Nov, 2021. I filed by paper March, 2021. IRS said they had to verify my identity before issuing a refund check. I called the 800 number every few days and finally someone answered, asked me some questions to verify my identity, and sent me a check.

 

[Dtail]

There is hope. I finally got my refund for 2020 in Nov, 2021. I filed by paper March, 2021. IRS said they had to verify my identity before issuing a refund check. I called the 800 number every few days and finally someone answered, asked me some questions to verify my identity, and sent me a check.

Okay good news on your front.
Yeah not willing right now to stay on massive holds on the phone. For me, they messed up the application of the 1095A (Health Exchange document), applying only my document to my return instead of combining mine and my brothers' document.
Just another example of folks who just can't do their job correctly.

 

[ERD50]

Yeah they cashed the check and lost your return, gotta love it.
...

And they blame COVID. Yet, they manage to cash check, but not scan the return (and lose it?)? Funny how that works.

One of the agents I spoke with during my 2.5 year adventure on the lost return and the letters no one is reading told me that my "letters" are probably in a room "in the other building" with "millions" of others and may never be read. I kid you not.

I picture that scene from Indiana Jones and the warehouse. "We got top people working on it. Top...people..."

-ERD50

 

[aja8888]

I picture that scene from Indiana Jones and the warehouse. "We got top people working on it. Top...people..."

-ERD50

Yeah, nice! LOL!

 

[RetMD21]

MIL finally got her refund in May from her 2020 return filed in May. It was a relief. We filed a paper return since I was out of e-files

 

[jollystomper]

And they blame COVID. Yet, they manage to cash check, but not scan the return (and lose it?)? Funny how that works.

It takes much less effort to cash a check than to scan and annotate a return. Also much less chance for human error .

Several times I have similar issues. Mail in a bill with check, check is cashed, month later get a bill. Call the provider, "oh yes, we see the payment, the "system' has not yet caught up, don't worry about it". Yeah, right... I am just glad that we use providers that accept electronic payments. Electronic filing is what I will stick with regarding the IRS.

 

[jebmke]

And they blame COVID. Yet, they manage to cash check, but not scan the return (and lose it?)? Funny how that works.




I picture that scene from Indiana Jones and the warehouse. "We got top people working on it. Top...people..."

-ERD50

Checks are separated almost instantly (that is why they have a different mailing address). The IRS does not scan returns. The returns are keypunched in by humans.

Most "lost returns" simply haven't been processed yet. It is going to get worse this year.

The EIP and ACTC payments on the return need to reconcile to their records or the return will likely bounce to a manual review process.

I read today that the EIP letters are sent to each recipient (so, married couple get two letters) and the ACTC is split equally into two letters (one for each spouse) even though the payment was one payment.

Have not read anything to confirm that but that means couples and families could get flooded with letters from the IRS. What are the chances that they lose them or file a return that doesn't reconcile?

 

[Phroig]

Thanks all. We get IP PINs and are required to file paper returns. The IRS letter didn’t explicitly say not to include correspondence. Would it be OK to include a cover letter and a copy of my certified mail receipt? Anything else I should/shouldn’t do when I mail them my return?

 

[RobbieB]

Yeah, I held out doing the paper thing until 2008. Doesn't make sense anymore with free e-file.