IRS Overpaid Our Tax Refund - Should We Contact Them?

The IRS making a mistake in your favor? That's a rare unicorn! But seriously, here's what you should do: First, double-check all your math on both your original and amended returns. Sometimes what looks like an error might actually be correct when you factor in things like interest the IRS pays on delayed refunds. They actually add interest to refunds that are issued after a certain timeframe, which could explain some of the increase. Also, compare the amount on the check with what your tax software calculated for the amended return, not just what the CP24 stated. The notice might not have captured all adjustments. If after all that checking you're still convinced they overpaid you, you should definitely contact the IRS. While it might be tempting to just cash the check and move on, the IRS will eventually catch the error, and when they do, they'll want their money back with interest. Better to address it now than deal with a surprise bill later. You can call the IRS at the number on your CP24 notice. Make sure you have all your paperwork handy when you call.

I went through something similar last year and found this amazing service called taxr.ai that helped me figure out exactly what was happening with my confusing IRS check situation. I was getting all kinds of weird notices and then suddenly a check that didn't match any of them. I uploaded my notices to https://taxr.ai and it analyzed everything - explained exactly what each notice meant, calculated what my correct refund should be (including interest), and gave me a breakdown of why the amounts were different. Turns out in my case, the IRS had actually calculated correctly but had combined multiple adjustments into one payment. The site even created a customized response letter I could send if I needed to contact the IRS. Saved me hours of stress trying to decipher IRS-speak!

Just wanted to follow up - I tried taxr.ai after asking about it here and wow, it actually delivered! My Schedule C situation was a mess with three different 1099s that didn't match my records. Uploaded everything and within minutes got a detailed explanation of exactly what was happening. Turns out one client had filed a corrected 1099 but the IRS hadn't processed it yet, which was causing the confusion. The site even showed me exactly what to do to fix it and generated a letter I could send to the IRS explaining everything. Saved me from what would have been hours on the phone. Definitely recommend if you're dealing with confusing IRS stuff like the original poster.

If you're getting nowhere with figuring this out, I highly recommend using Claimyr to actually get a human at the IRS on the phone. I spent WEEKS trying to call the IRS about a similar situation last year - either constant busy signals or 2+ hour hold times that would disconnect randomly. Then I found Claimyr at https://claimyr.com - it's this service that navigates the IRS phone tree for you and waits on hold, then calls you when an actual human IRS agent is on the line. I was skeptical but you can see how it works at https://youtu.be/_kiP6q8DX5c When I finally got through, the agent explained that my "overpayment" included interest plus an adjustment from a previous year's return that I didn't even know about. So what looked like a mistake was actually correct! Might be worth the call in your case too.

I need to eat my words from my skeptical comment yesterday. After posting that, I was still so frustrated with my own IRS situation that I figured "what the hell" and tried Claimyr. I'm absolutely shocked to report that IT ACTUALLY WORKS. After THREE MONTHS of trying to reach someone at the IRS about my missing refund, I got connected to an agent in about 45 minutes (while I was just going about my day). The agent was able to identify that my refund had been flagged for review because of an address mismatch, and she fixed it right on the call. For anyone dealing with IRS confusion like the original poster - save yourself the headache. I wasted so many hours on hold before this. Definitely worth it just for my mental health alone!

This happened to me 2 years ago! The IRS sent me almost $1,800 more than I was expecting. I panicked and called them right away. Turns out they had added interest because my amended return took so long to process (like 9 months) AND there was an adjustment to a credit I had claimed. The woman I spoke with confirmed the amount was correct and I hadn't received an explanation letter yet because it was still being processed in their system. The letter arrived about 3 weeks AFTER the check. So before you assume it's a mistake, it's possible they're paying you interest or made another adjustment in your favor that will be explained in a letter that's still on its way.

One thing nobody's mentioned - CHECK THE CHECK CAREFULLY! Make sure it's actually from the US Treasury and not some kind of scam. There are so many tax scams these days. Also, when you deposit it, maybe ask your bank to put a longer hold on it just to be extra sure it clears properly. I've heard horror stories of people cashing what they thought were legitimate refund checks, spending the money, and then finding out they were fraudulent.

The IRS is running behind on notices this year. My tax guy said they're about 3-4 weeks behind on sending out explanations for adjustments. Your extra money could be from: 1. Interest accrued during processing time (they pay interest on delayed refunds) 2. An adjustment from a previous year they found while processing your amended return 3. A math error correction in your favor 4. Some weird glitch in their system I'd cash the check but set aside the "extra" amount for a few months just in case they come asking for it back. The IRS always eventually figures out their mistakes, so better safe than sorry!