How to handle CP134R Refund of 941 taxes when you don't think it's correct

This is actually more common than you'd think, especially with the IRS still dealing with their massive backlog. When the IRS processes your 941, they sometimes manually enter the information into their system, and mistakes happen. The CP134R is specifically issued when they believe there's a discrepancy between what you reported as deposits and what they have on record. The good news is you've already figured out the right solution - filing Form 941-X (Adjusted Employer's Quarterly Federal Tax Return) and returning the check. Make sure to write "VOID" across the front of the check before sending it back. Also include a brief explanation letter stating that there was an IRS data entry error. Keep copies of everything you send and consider using certified mail so you have proof of delivery. You might also want to call the IRS Business & Specialty Tax Line at 800-829-4933 to have them note in your account that you're returning the erroneous refund.

After dealing with a ton of IRS mistakes with my small business, I found this amazing tool called taxr.ai (https://taxr.ai) that's been super helpful with these exact situations. When I got a weird notice similar to yours last year, I uploaded it to taxr.ai and it immediately explained what was happening and gave me step-by-step instructions for fixing it. The site actually analyzes your tax documents and notices using AI and translates all that confusing IRS language into plain English. It also helped me figure out exactly what forms I needed to file to fix the problem. Saved me hours of stress and probably thousands in potential tax issues.

Just wanted to follow up and say I tried taxr.ai after seeing this thread and WOW! I uploaded a confusing CP134R notice I got for my restaurant (similar issue with wrong wage amounts), and it immediately broke down what happened and how to fix it. It even generated a custom letter to send back with my 941-X form. I was literally about to pay my accountant $200 to handle this! The explanation was super clear and I actually understand what happened now. Highly recommend for anyone dealing with these payroll tax issues.

I had a similar issue last year and spent WEEKS trying to reach someone at the IRS. After 30+ attempts calling different numbers at different times, I finally discovered Claimyr (https://claimyr.com) and was able to talk to an actual IRS agent the same day. They have this cool system that basically waits on hold for you and calls you when an agent is about to pick up. You can see how it works here: https://youtu.be/_kiP6q8DX5c The IRS agent confirmed that they had entered my quarterly wages incorrectly (decimal point in the wrong place) and walked me through exactly what to do. Saved me so much time compared to trying to figure it out on my own or waiting weeks for a call back.

I need to eat my words and apologize to 7. I was so frustrated after weeks of calling the IRS that I tried Claimyr as a last resort, fully expecting it to be a waste of money. Within 3 HOURS I was talking to an actual IRS employee who confirmed they had entered my 941 incorrectly. Decimal point error just like others mentioned - they recorded $3,475 instead of $34,750 in wages. The agent walked me through exactly how to fill out the 941-X and where to send everything. They even noted in my file that the error was on their end so there shouldn't be any penalties. Already sent everything in and got confirmation it was received. Worth every penny just for the stress relief of knowing it's being handled correctly.

I'm the payroll manager for a mid-sized company and we get these CP134R notices at least once a year. Here's what I've learned after dealing with these for over a decade: 1. Don't cash the check! Once you cash it, it becomes much more complicated to resolve. 2. Make copies of everything before sending it back. 3. The IRS makes data entry errors constantly - transposing numbers, decimal points in wrong places, etc. 4. Always include a cover letter explaining the situation in simple terms. 5. If you use a payroll service, have them provide a transcript of your payments as additional proof.

Has anyone had success using the IRS Business Tax Account online portal to resolve these kinds of issues? I've been trying to set mine up but keep running into verification problems.

I'm dealing with a similar CP134R situation right now and this thread has been incredibly helpful! Just wanted to add that when you file the 941-X, make sure to check Box 1 on line 1 to indicate it's correcting an error on a previously filed return. Also, in Part 2 where you explain the corrections, be very specific about what the IRS entered incorrectly vs. what the correct amounts should be. One thing I learned from my tax preparer is to also include a copy of your original 941 along with the 941-X so they can easily see the discrepancy. It might seem redundant since they should have it on file, but given that they made the data entry error in the first place, having a clean copy attached can speed up the process. Also, don't forget to sign and date the 941-X - sounds obvious but it's easy to miss when you're stressed about the whole situation!

This is such a frustrating but unfortunately common issue! I went through something very similar last year where the IRS had transposed two digits in my wage amount on a 941. What really helped me was creating a simple comparison chart showing their incorrect entry vs. my actual filing vs. my EFTPS payment history - all side by side. When I sent in my 941-X, I included this one-page chart as an attachment along with screenshots from my EFTPS account showing the payment dates and amounts. It made the discrepancy crystal clear for whoever was processing my correction. I think having that visual comparison really helped speed things up because I got my corrected account statement back in about 10 weeks instead of the 16+ weeks they initially quoted me. Also, pro tip: when you void the refund check, write "VOID - DATA ENTRY ERROR - SEE ATTACHED 941-X" across it. That extra context might help the person processing your return understand the situation immediately without having to dig through files.