Accountant applied our tax refund to next year's estimated taxes without asking us

Thank you for these suggestions! I wasn't aware I could file a 1040-X for this purpose. Do you know if I need any special documentation, or just the amended form? And is there a deadline for filing the amendment?

You'll need to complete the 1040-X form and include an explanation of the changes in Part III of the form. Simply state that you want to receive your refund now rather than applying it to next year's estimated taxes. You generally have 3 years from the original filing deadline to submit an amended return, so you have plenty of time. For documentation, it's good to include a copy of your original return for reference, though the IRS should already have this on file. If you e-filed your original return, you may need to mail in the 1040-X as some amendments still require paper filing.

How does this service actually work? Do you upload your tax documents to them or what? I'm always nervous about sharing my tax info online.

Did they help with actually preparing the amended return too or just analyzing what went wrong? I'm in a similar boat (not as much money though) and need to know if I'd still need to hire someone else after using their service.

You upload your tax documents securely to their platform, and their AI analyzes everything to identify issues or opportunities. They use bank-level encryption, so it's actually safer than emailing documents to a regular accountant. They provide step-by-step guidance for preparing the amended return, including which forms you need and how to fill them out. In my case, I was able to complete the amendment myself with their instructions, but they also offer connections to tax professionals if you want someone to handle the filing for you. They basically give you the roadmap, and you can decide how much help you need from there.

Wait, you're saying there's actually a way to talk to a real person at the IRS without spending hours on hold? How does this work exactly? Is it just for certain types of tax issues?

This sounds like a scam. How could a third party possibly get you through to the IRS faster when their phone systems are all the same for everyone? I'm skeptical that this is worth anything.

It works for any issue where you need to speak to an IRS representative. The service basically uses an automated system to navigate the IRS phone tree and wait on hold for you. When they reach a live agent, they call you and connect you directly. It works because they have the technology to manage multiple calls simultaneously and efficiently navigate the IRS system. It's definitely not a scam. The reason most people can't get through is that the IRS phone lines have absurd wait times (sometimes 3+ hours), and most people give up. Claimyr just handles the waiting for you. They can't expedite the actual IRS processes, but they can make sure you actually get to speak to someone who can help, which makes all the difference when you're trying to resolve tax issues.

Would you recommend discussing this issue with the accountant's supervisor? Or is it better to just move on to a new tax professional at this point?

I'd definitely escalate this to a supervisor or the firm's partner. A mid-5-figure refund being handled differently than expected without client consultation is a serious customer service issue. Explain calmly that this decision has significant financial implications for you, and you expect them to help resolve it, including assistance with filing the amended return. If they're still dismissive after escalation, that's when I'd definitely move on to a new tax professional. A good accountant should be willing to explain their decisions and help fix issues when they arise. Also, be sure to get clear communication about their standard procedures before next tax season, regardless of which firm you use.

This is actually good advice. I adjusted my W-4 last year to have less withheld and get more in each paycheck instead of a big refund. It's made a huge difference in my monthly budget!

That's a fair question. We had some unusual circumstances last year - I received a large bonus that had mandatory 37% withholding, plus we sold some property but had significant basis in it so the withholding ended up being much higher than the actual tax due. We normally try to get our withholding pretty close to what we'll owe. You're absolutely right though - going forward we're adjusting everything to prevent this situation. I just need to solve the immediate problem of getting this year's refund back rather than having it applied to estimated taxes.