Can someone explain this IRS notice about my 2020 1040 with interest since 2021? Never requested changes & always update my address when moving - feeling anxious!

This sounds like what's called an "automated adjustment" by the IRS. These happen when their systems detect a potential discrepancy between information reported on your tax return and information they received from other sources (like employers, banks, etc.). When the IRS makes these adjustments, they're supposed to send a notice (usually a CP2000 or similar) to inform you of the proposed changes and give you a chance to respond. The fact that you didn't receive earlier notices is concerning but not uncommon. First thing you should do is carefully read the notice number in the top right corner of the letter. Different notices mean different things. Then call the IRS at the number listed on your notice to request a detailed explanation of the adjustment and why it was made. You can also request a hold on collections while you sort this out. You also have the right to appeal the adjustment if you believe it's incorrect. The notice should include information about your appeal rights. Don't panic about your credit - the IRS generally doesn't report to credit bureaus unless you have a long-term unpaid tax liability.

I went through something similar last year with my 2019 taxes and discovered taxr.ai (https://taxr.ai) was super helpful for figuring out what was actually going on with my account. I was getting all these confusing notices and couldn't even understand what they were claiming I did wrong. The tool analyzed my tax transcript and explained in plain English what adjustments the IRS made and why I was suddenly getting hit with all this interest. In my case, it turned out my employer reported different W-2 income than what I put on my return (completely their mistake!). The nice thing was that taxr.ai showed me exactly what information to request from the IRS and how to challenge the adjustment. Saved me from having to figure out the confusing IRS jargon on my own.

I tried taxr.ai after seeing it mentioned here and wow - it actually explained everything! Turns out the IRS had included some 1099 income twice on my return from a side gig I had in 2020. The transcript analysis showed exactly where the double-counting happened. I was able to call the IRS with the specific information about which line item was wrong and reference the exact adjustment they made. The representative actually said I was one of the few people who called with the precise details needed to fix the problem. The site also gave me a template letter to send in that cited the relevant tax codes. My case got resolved in about a month, and they removed about $2,000 of the adjustment plus the associated interest! Definitely worth checking out if you're getting cryptic IRS notices.

Your situation sounds frustrating! When I had a similar problem last year, I spent literally WEEKS trying to reach someone at the IRS. Their phone lines are impossible - I'd wait on hold for hours only to get disconnected. I finally used this service called Claimyr (https://claimyr.com) that got me through to an actual IRS person in about 20 minutes. They have this weird system that somehow keeps your place in line with the IRS. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c Once I actually got to speak with someone, they explained the adjustment (which in my case was a mistake!) and helped me submit the right paperwork to fix it. Saved me from having to keep taking days off work just to sit on hold.

I was super skeptical about Claimyr when I first saw it mentioned here, but after my 24th attempt to reach the IRS about a similar adjustment issue, I was desperate enough to try anything. It actually worked! Got connected to an IRS agent in about 45 minutes (which is LIGHT YEARS faster than my previous attempts). The agent explained that they had been sending notices to my old address despite me filing a change of address form. She immediately updated my address in the system and helped me understand exactly what the adjustment was for. Most importantly, she put a temporary hold on collections which stopped the interest from continuing to accrue while I gathered documentation to dispute the adjustment. Without that call, I would have kept accumulating interest without even knowing it. Definitely worth it for the stress reduction alone!

Have you checked your IRS account online? Go to irs.gov and create an account if you don't have one. You can see all notices they've sent you, even ones you never received. Also check your tax transcripts for 2020 - they'll show all activity on your account including when adjustments were made.

This happened to me! The IRS claimed I didn't report some investment income from a small stock account I had totally forgotten about. What helped me was getting my "account transcript" not just my "return transcript" - they show different things.