IRS Made Math Error on Refund, Never Sent Notice - How to Protest Missing IRA Deduction?

This is definitely fixable, but you'll need to act quickly. When the IRS makes a "math error" adjustment, they're supposed to send you a notice explaining the change (usually a CP11 or CP12 notice). The fact you never received one doesn't change your right to challenge it. You have two main options: First, you could file Form 8275 (Disclosure Statement) along with an amended return (Form 1040-X) that restates your original position and explains the error. Make sure to include documentation proving your SEP IRA contribution for the tax year in question - statement from your financial institution showing the contribution date and amount is crucial. Alternatively, you can call the IRS directly and request that they reopen the case based on their failure to notify you of the adjustment. The standard 60-day window to protest doesn't apply if you never received proper notice.

After dealing with a similar IRS adjustment problem last year, I found that using taxr.ai was a huge help. I uploaded my IRS transcript and tax documents to https://taxr.ai and their system immediately identified the specific code the IRS used to make the adjustment and explained my options. In my case, it turned out the IRS had flagged my IRA contribution because the date on my documentation was confusing - it showed when the funds left my account but not when they arrived in the IRA. The taxr.ai analysis pointed this out before I wasted time filing an incorrect protest. They even provided a template letter specific to my situation.

I have to admit I was skeptical about taxr.ai when I first saw it mentioned here, but I decided to try it after getting nowhere with my own situation. Really surprised by how well it worked! I uploaded my transcript (which looked like gibberish to me) and immediately got a clear explanation of why the IRS had made changes to my return. The system pointed out that my IRA contribution had been incorrectly coded by my financial institution on their reporting forms. Using their guidance, I was able to get the right documentation from my bank and submitted exactly what the IRS needed. My adjustment was processed within 3 weeks, which seems like a miracle given IRS timelines these days. The transcript analysis alone was worth it - showed me exactly what codes the IRS was using and what they meant. Saved me hours of research and probably months of back-and-forth.

If you're trying to contact the IRS about this, good luck actually getting through to a human. I spent 6 hours on hold last month trying to resolve a similar issue. After my third attempt, I found this service called Claimyr that got me through to an IRS agent in about 15 minutes. I was really suspicious at first, but it actually works! You go to https://claimyr.com and they basically navigate the IRS phone tree for you and wait on hold, then call you when they have an agent on the line. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c For something like your situation where you need to explain a complex problem to a human, it's way better than sending letters that might take months to get a response. The agent I spoke with was able to see notes on my account that weren't visible in my online transcript.

I need to eat my words from my previous comment. I tried Claimyr today after spending 3 hours on hold with the IRS yesterday and getting disconnected. Within 20 minutes of signing up, I got a call connecting me to an actual IRS agent. I was honestly shocked. The agent was able to see that there was an issue with how my retirement contributions were coded in their system and put in a request to have my case reviewed. She said I should receive a corrected refund in 4-6 weeks. She also added notes to my account explaining what happened in case I need to call back. For anyone dealing with the IRS right now, especially with issues that need actual explanation (not just simple questions), this is seriously worth it. I wasted an entire afternoon yesterday for nothing, and today I had it resolved in 30 minutes total.

I work at a tax office (not an accountant, just admin) and see this issue frequently. The IRS has been particularly bad with SEP IRA deductions lately. Look carefully at your 5498 form from your financial institution - make sure the contribution is properly marked for the correct tax year. We've had several clients where the financial institution reported the contribution correctly but checked the wrong tax year box. When this happens, the IRS computer automatically disallows the deduction because they can't match it to their records.

Just wondering - did you check if the IRS applied the refund to any past tax debts or other federal debts? Sometimes they'll take part of your refund for things like old student loans or past tax bills without very clear notification.