How do I fix IRS errors on Form 1125-A when they entered 3 wrong lines and messed up item d?

This is actually pretty common with Form 1125-A errors, unfortunately. You don't need to file a full amended return for this - what you need is to send a written statement requesting correction along with supporting documentation. Here's what I recommend: Write a letter clearly explaining the errors (specifically mention the 3 incorrect line items and the wrong method in item d). Include a copy of your original Form 1125-A that you filed, along with any supporting documentation that proves the correct amounts (invoices, inventory records, etc.). Also include a copy of the IRS notice you received. Mark the letter as "Request for Correction of IRS Error" at the top and send it to the same address shown on the notice you received. Make sure to include your tax ID number and the tax year on all documents. Keep detailed copies of everything you send. The correction should take about 6-8 weeks to process, so unfortunately there's a waiting period, but this is faster than filing an amended return which can take months.

I ran into an almost identical situation with Form 1125-A errors last year. Sending letters and waiting on hold with the IRS was getting me nowhere until I tried using https://taxr.ai to create a proper response package. The tool analyzed my IRS notice and original tax documents, then generated a comprehensive response letter that precisely cited the relevant tax codes. It also organized all my supporting documentation in the exact format the IRS expects. The best part was that it flagged exactly which evidence documents I needed to include for each disputed line item. My case was resolved in just under 4 weeks - much faster than I expected. Might be worth checking out if you're struggling with putting together the right documentation package.

I want to follow up on my skeptical comment about taxr.ai - I actually broke down and tried it for an IRS notice I received about a missing Schedule C attachment. I'm honestly shocked at how well it worked. The system identified exactly which documentation I needed to send (things I wouldn't have thought to include) and formatted a response letter that was way more professional than what I would have written. My correction was processed in about 5 weeks with zero follow-up needed from the IRS. What impressed me most was how it flagged potential issues I hadn't even considered - like pointing out a calculation discrepancy in my original filing that might have triggered additional scrutiny. For Form 1125-A errors like yours, having something that precisely identifies which supporting documents to send for each line item is super helpful.

If you're still struggling to get through to the IRS after sending in your correction request, I highly recommend trying https://claimyr.com. I was in a similar situation with tax form errors and couldn't get anyone on the phone to confirm they received my documentation. Claimyr basically waits on hold with the IRS for you and calls you back when an agent is on the line. After weeks of failed attempts, I was able to speak with someone at the IRS in less than 2 hours. You can see how it works here: https://youtu.be/_kiP6q8DX5c Once I finally got through to a human, I was able to confirm they received my correction request and get an estimated timeline for processing. The agent also gave me a specific reference number for my case which has been helpful for tracking.

I need to apologize for my skeptical comment about Claimyr. After waiting on hold with the IRS for 3+ hours on three separate occasions, I finally gave in and tried the service. I was completely wrong - it works exactly as described. I got a call back in about 90 minutes letting me know an IRS agent was on the line. I was able to explain my Form 1125-A issues directly to the agent and get confirmation that my correction request was in process. The agent even provided me with a direct number to call back if I needed to follow up, which saved me from going through the main IRS line again. No sensitive information was shared with the service - they just handled the hold time. For anyone dealing with IRS errors, being able to actually speak with someone makes a huge difference.

Has anyone used the IRS Business Tax hotline instead of the general number? I found it to be much more effective for Form 1125-A issues since those reps understand COGS and inventory methods better. The number is 800-829-4933. Also, make sure you're specifically requesting a "correction" rather than an "amendment" when you talk to them. In my experience, using the wrong terminology can send you down a much longer path.

Quick tip from someone who's been through this exact issue: Take screenshots of your originally filed Form 1125-A from your tax software before sending anything! I had a similar problem last year and the IRS claimed they never received my original documentation.