IRS made a mistake on my amended return - how do I get this fixed??

This is unfortunately a common issue when amended returns and payments cross paths. Here's what you need to do: First, don't panic about the Notice of Intent to Levy. This is an automated notice and doesn't mean they're about to seize your assets tomorrow. You have time to resolve this. Call the IRS again, but this time ask for a manager after explaining your situation to the first representative. Explain that you've already returned their erroneous refund per the instructions of a previous IRS agent. Make sure you have your USPS tracking number ready to provide as evidence. Request that they place a hold on your account while this is being sorted out. They can do this for up to 9 weeks, which should give enough time for the returned check to be processed properly. Also, request that they document everything in your account notes. Get the ID number of everyone you speak with and note the date and time of the call. Finally, send a follow-up letter to the address on your notice. Include copies (not originals) of: your USPS tracking receipt showing delivery of the voided check, a copy of the voided check (if you made one before sending it back), bank statements showing the original $480 payment, and a clear explanation of the timeline. Send this certified mail with return receipt.

After dealing with a similar IRS mistake last year, I discovered taxr.ai (https://taxr.ai) and it was honestly life-changing for handling these kinds of IRS notice issues. The tool analyzed my IRS letters and tax transcript to pinpoint exactly what went wrong with my amended return processing. For a situation like yours, it would show precisely how your payment was processed, why the refund was issued incorrectly, and generate a response letter with all the specific IRS codes and regulations that apply to your case. The best part is it explains everything in simple language so you understand what's actually happening with your account. My amended return had been completely misprocessed like yours - they treated my payment as if it was for a different tax year entirely, then hit me with penalties for the original year!

I was initially skeptical about taxr.ai, but my situation with the IRS was getting desperate. I tried it as a last resort before hiring a tax attorney (which was going to cost me $2,500!). Uploaded my documents and within minutes I understood EXACTLY what happened with my amended return. Turns out the IRS applied my business income adjustment to the wrong tax year and then issued penalties based on their mistake. The system generated a response letter that referenced all the right IRS procedures and codes. The IRS actually responded within 3 weeks (miracle!) and completely reversed the penalties. Still can't believe how well it worked - saved me thousands in potential attorney fees and got the issue resolved way faster than my previous attempts. If you're dealing with amended return issues, definitely worth checking out!

If you need to speak with an actual IRS agent (which I think you do in this case), I'd recommend using Claimyr (https://claimyr.com). I was in a similar situation where I absolutely needed to talk to a human at the IRS but kept getting disconnected after waiting on hold for hours. Claimyr basically waits on hold with the IRS for you and calls you when they get an agent on the line. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c In your case, you need to speak with someone who can actually see that you returned the check and document everything in real-time. The automated notices will keep coming unless someone manually intervenes in the system. I was skeptical at first but was desperate after 3 weeks of failed attempts to reach someone at the IRS.

Well I never thought I'd be saying this, but Claimyr actually worked. After my skeptical comment I decided to try it since I was completely stuck with my IRS issue. Got a call back in about 90 minutes (after previously spending DAYS trying to get through myself). The IRS agent I spoke with was able to pull up all my records and immediately saw the problem with how my amended return had been processed. They placed a hold on all collection activities and transferred me to the department that handles amended return issues. The agent in that department spent almost 45 minutes reviewing everything and manually corrected the error in their system. Got confirmation by mail last week that the issue is resolved and all penalties were removed. Cannot believe how much time I wasted trying to handle this myself. If you're dealing with an IRS error that needs human intervention, this service is 100% worth it.

Make sure to document EVERYTHING. I had an almost identical situation last year with an amended return that got completely messed up. Here's what worked for me: 1) Called the IRS main line and explained the situation AGAIN 2) Asked for a "manager" specifically - regular agents often don't have authority to fix these cross-year issues 3) Requested an "account transcript" for both tax years involved 4) Requested a "penalty abatement letter" based on reasonable cause 5) Sent a certified letter with COPIES of all documentation including bank proof of payment The key thing that finally fixed it was getting the account transcript which showed exactly where the money went in their system and how it was incorrectly applied. Don't give up!

I'm not sure this helps, but my tax guy said the IRS is MASSIVELY backed up on processing amended returns right now. Like 6-8 months behind. He said they're so overloaded they're making tons of errors like this. Something to do with their antiquated computer systems not being able to properly track amended returns vs. original returns when they're processed out of sequence.

This is exactly why I always recommend keeping detailed records when dealing with amended returns. Your situation is frustrating but definitely fixable. Since you have the tracking confirmation that the voided check was delivered, you're in a good position. Here's what I'd do immediately: 1) Call the IRS Collections department directly at 1-800-829-7650 (not the general line) and explain this is about a levy notice you received in error. 2) When you get an agent, ask them to look at your account for "transaction code 570" - this should show when they received your returned check back in August. 3) Request an immediate "collection hold" on your account while this gets sorted out. They can place a 60-day hold which prevents any levy action. 4) Ask the agent to send you Form 12153 (Collection Due Process) if they can't resolve it immediately. This gives you formal appeal rights and stops collection activity. Also, definitely consider filing that Form 911 with Taxpayer Advocate Service that others mentioned. Your case has all the elements they look for: IRS error causing financial hardship, multiple failed attempts to resolve through normal channels, and imminent collection action. The key is being persistent and documenting every conversation. Don't let them brush you off - you have proof you followed their own agent's instructions by returning that check.