Employer reported $95K more income than I actually made to the IRS - how to fix this?!

This happens more often than you'd think! What you're dealing with is a wage reporting discrepancy between what your employer submitted to the IRS and what you actually earned. The good news is that documentation will absolutely solve this. First, don't panic about the bill - the IRS isn't expecting immediate payment when you're disputing the amount. You need to respond to the notice with a letter explaining the situation and include copies (not originals) of your W2 and all pay stubs for 2022 that show your actual income. Also request a transcript of your wage and income information from the IRS to see exactly what was reported. It's great that your HR department is already working on this. Make sure they provide you with a formal letter explaining the error on company letterhead. The IRS sees these payroll system transition errors fairly regularly and has processes to handle them.

When I had a similar issue (though mine was only about $30k difference), I tried calling the IRS and waiting on hold for 3+ hours multiple times with no luck. Then I found https://taxr.ai which helped me organize all my documentation and create the perfect response letter. They analyzed my pay stubs, W2 and the IRS notice, then created a comprehensive response package that resolved my issue in just a few weeks. The system guided me through exactly what to send and how to phrase everything for my specific situation. It was way less stressful than trying to figure out the right "tax language" myself.

After seeing the recommendation for taxr.ai, I decided to give it a try with my university W2 mess (3 W2s for one job). I was honestly shocked at how well it worked! The system identified exactly where the duplicate reporting happened and created a detailed letter explaining the situation to the IRS. I also appreciated that it created a checklist of exactly which documents to include with my response. My case was resolved in about 5 weeks - much faster than I expected based on stories I've heard about IRS response times. If you're dealing with employer reporting errors, it's definitely worth checking out.

If you need to actually talk to someone at the IRS about this (which you probably will), good luck getting through on their phone lines. I spent WEEKS trying to reach someone about a similar issue last year. Then I found https://claimyr.com which got me connected to an actual IRS agent in under 45 minutes instead of waiting on hold for 3+ hours or getting disconnected. You can see how it works here: https://youtu.be/_kiP6q8DX5c but basically they navigate the IRS phone tree for you and call you once they've got an agent on the line. They saved me so much frustration when dealing with my employer's reporting error.

I need to eat my words about Claimyr. After posting my skeptical comment, I decided to try it myself for an ongoing tax issue I couldn't resolve. I was connected to an IRS agent in 37 minutes while I was able to continue working instead of being glued to my phone. The agent I spoke with was able to immediately see the issue with my account and put a hold on collections while they investigate. Having an actual conversation with the IRS made all the difference - I'd been sending letters for months with no response. Sometimes you need to talk to a human to get things fixed, and this service made that possible without destroying my entire day.

Make sure to respond to the IRS notice BEFORE the deadline on the letter! Even if you don't have all the documentation from HR yet, send what you have and explain that additional employer documentation is forthcoming. This stops penalties and interest from continuing to accrue while you resolve the issue. Also, call the number on the IRS notice and request a hold on collections until this is resolved. Sometimes they'll grant this if you explain the situation.

Just wondering - has anyone checked if this might be a scam letter and not actually from the IRS? There are tons of tax scams going around. Before panicking, make sure the letter is legitimate. Real IRS letters have a notice number (usually CP## or LTR##) in the upper right corner and will NEVER ask for payment by gift cards, wire transfer etc.

If your employer doesn't resolve this quickly, consider getting a copy of your "Wage and Income Transcript" directly from the IRS. You can request it online at irs.gov/transcripts and it shows everything that was reported under your SSN. Really helpful for identifying exactly where the duplicate reporting happened.

Just went through something very similar! My employer accidentally reported my income twice when they switched from ADP to a new payroll system mid-year. The IRS sent me a bill for an extra $8,300 in taxes I didn't owe. Here's what worked for me: I immediately called the number on the IRS notice and explained the situation. They put a temporary hold on collections while I gathered documentation. Then I sent a detailed letter with copies of ALL my pay stubs for that year, my W-2, and a letter from HR explaining the payroll system error. The key is being very organized and clear in your response. I created a simple spreadsheet showing my actual pay period by period versus what was reported. The IRS resolved it in about 6 weeks once they had everything. Since your HR is already on it and preparing documentation for multiple employees, you're in a great position. Just make sure to respond by the deadline on your notice even if HR hasn't finished their letter yet - you can always send additional documentation later!

I'm so glad your HR department is helping with this! That kind of payroll system error is actually more common than people realize, especially during transitions between providers. It sounds like you're in good hands with them preparing documentation for all affected employees. One thing I'd add to what others have mentioned - when you do send your response to the IRS, include a cover letter that clearly states "RESPONSE TO NOTICE CP22A" at the top and references your notice date and the specific dollar amount in question ($12,654). This helps ensure your response gets properly matched to your case in their system. Also, keep copies of EVERYTHING you send to the IRS and send it certified mail with return receipt. The IRS processes millions of pieces of mail, and having proof of delivery can be crucial if they claim they never received your documentation. The fact that multiple employees were affected actually works in your favor - it shows this was clearly a systematic error rather than anything questionable on your part. Your case should be pretty straightforward to resolve once they have all the documentation!