IRS Notice: 2019 1040SR Amt Due $25,656!!!

[scrabbler1]

With these letters being generated by computers nowadays, I wonder if this is a result of electronic filing? Do people who file by paper via snail mail get these?

Oh yes they do! I complete the tax forms for my (snake-bit) friend and mail them in. A few years ago, I forgot to post the amount of Qualified Dividends on Form 1040 but completed the rest of the form, including the QD/LTCG worksheet, using the actual amount of QD. The IRS sent him a letter claiming taxes owed. I put together an amended return explaining the error and adjusting the actual taxes due, and a small refund being carried into the following year.

The amended return was eventually accepted, with the carryover refund applied as planned. But while the IRS was processing the amended return, he kept getting meaner and meaner computer-generated letters from the IRS demanding payment of taxes owed. Being a third-party designee, I called the IRS on my friend's behalf and the rep agreed to call off the dogs while the amended return was pending.

 

[cathy63]

With these letters being generated by computers nowadays, I wonder if this is a result of electronic filing? Do people who file by paper via snail mail get these?

The second thing* that happens to a paper return is that it's turned into an electronic file. From there it's handled the same way as an e-filed return. Somewhere there's a flow chart showing how returns are processed (though I couldn't find it just now with a quick Google search). As I recall, the paper and e-file paths merge very early on, way before identity theft checks, W-2 and 1099 matching, refund processing, etc.

The problem though, is if the paper returns are sitting in a huge pile and don't make it to the first step of the process in a timely fashion, then the computers will kick out letters describing problems that might already have been fixed by paper filings. Until last year, all amended returns had to be filed on paper only; so you could e-file incorrect info in March, correct it with an amended paper return, but have to wait a few months for that to get processed. As long as the paper was still sitting in a pile, you'd get letters from the IRS until they got caught up.

*first thing is they deposit any check you sent in with the return