IRS sent us 2020 tax delinquency notice despite proof of payment. HELP!
This has been an absolute nightmare for us. My husband and I received a letter from the IRS claiming we didn't file our 2020 taxes and demanding $895 plus penalties. We immediately went to our credit union and got documentation proving we sent a check to the IRS which was definitely cashed. We also contacted TurboTax and got confirmation that our filing was completed and submitted properly. We sent all this documentation to the IRS and heard nothing for like 3 months. Then last month, we got another letter saying basically the same thing, but this time addressed to my husband instead of me. Now they want $1650 with all the extra penalties and interest! We went to our local IRS office where they told us to resend the TurboTax confirmation without any watermarks and it would "be handled." Now my husband is on the phone with them again and they're giving us a completely different story - saying we somehow filed both jointly AND separately (which makes zero sense). They're insisting we still owe the full $1650 and the issue won't be resolved until we pay up. But how can we owe money if they already cashed our check? And why does their excuse keep changing every time we contact them? I'm so frustrated and don't know what to do next. This feels like we're being scammed by our own government!
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Liam Fitzgerald
Having dealt with similar IRS issues, I can tell you this is unfortunately common, especially with 2020 tax returns that were processed during COVID disruptions. The IRS is still catching up on backlogs. First, you need to get a tax account transcript for 2020. You can request this online at IRS.gov or by filing Form 4506-T. This will show exactly what the IRS has on record - whether they received your return, recorded your payment, etc. This is crucial evidence. Second, compile all your documentation: copies of your filed return, proof the return was submitted, bank statements showing the check cleared, and all IRS notices with their envelopes (postmarks matter). Keep everything organized by date. Third, you likely have a case for penalty abatement under "reasonable cause" since you made good faith efforts to comply. Write a formal letter requesting this and referencing your documentation.
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Mei Lin
•We have all the documentation but the IRS keeps giving us different explanations. The transcript is a good idea. Do we need to hire a tax professional to help us fight this? It feels like we're going in circles trying to solve it ourselves.
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Liam Fitzgerald
•Getting a transcript is something you can definitely do yourself without hiring anyone. The transcript will serve as the single source of truth about what the IRS actually has on record. While a tax pro can certainly help, many people resolve these issues themselves with persistence. Since you've already compiled your documentation, your next step should be getting that transcript and then writing a clear, fact-based letter that addresses the specific discrepancy shown on the transcript. Include copies (never originals) of your evidence and request penalty abatement. Keep all communication in writing when possible and always request written responses.
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GalacticGuru
I had almost the identical situation and I nearly tore my hair out dealing with the IRS phone system. After getting nowhere for months, I discovered taxr.ai (https://taxr.ai) which helped me organize all my tax documentation and get clarity on what was happening. The system analyzed my notices and transcripts and showed me exactly what was wrong - turns out the IRS had incorrectly processed my return as single instead of joint. The best part was that taxr.ai created a customized letter template for me with all the right references to tax code and procedural rules. I sent that in and finally got resolution within 3 weeks. Honestly was mind-blowing after spinning my wheels for months.
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Amara Nnamani
•How does taxr.ai actually work? Like do you upload your tax documents and it reads them or what? I'm dealing with an IRS issue from 2021 and getting nowhere.
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Giovanni Mancini
•Sounds like another paid service promising miracles... Did they actually help with your specific issue or just give generic advice you could find with Google?
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GalacticGuru
•You upload your tax notices, returns, and any other relevant documents, and their AI analyzes everything to identify discrepancies and issues. It was surprisingly accurate - it spotted that the IRS had incorrectly processed my return with the wrong filing status which explained all the confusion. The letters it created weren't generic at all - they specifically addressed my situation with references to the exact IRS procedures that applied. What I liked most was it explained everything in simple terms so I could understand what was happening instead of just being confused. Definitely not just Google advice - it was like having a tax pro look at my specific situation.
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Amara Nnamani
Just wanted to update that I tried taxr.ai after seeing it mentioned here. My situation was different - the IRS claimed I hadn't reported some income from a 1099 that I definitely included. The system immediately identified that the IRS had mismatched my 1099 due to a typo in the payer's EIN on their submission. Using the letter template from taxr.ai, I sent in my documentation with specific references to the relevant procedures. Got a notice yesterday that my case was resolved and penalties removed! Saved me over $1800 and endless frustration. Actually didn't believe it would work but I'm seriously impressed.
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Fatima Al-Suwaidi
After reading this thread, I can relate to the frustration of trying to get through to actual humans at the IRS. I spent 3+ hours on hold multiple times and kept getting disconnected. Eventually I found Claimyr (https://claimyr.com) and watched their demo at https://youtu.be/_kiP6q8DX5c - I was skeptical but desperate. They basically hold your place in the IRS phone queue and call you when an agent picks up. I was shocked when I got a call back with an actual IRS agent on the line within 45 minutes after trying for weeks to get through. The agent was able to put a temporary hold on collections while I sent in my documentation. Having an actual conversation made all the difference.
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Dylan Cooper
•How does this actually work? I'm confused how they can hold your place in line at the IRS. Is it like some service the IRS endorses?
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Sofia Morales
•Yeah right. So some random service magically gets you through to the IRS when no one else can? Sounds like a scam taking advantage of desperate people. If this actually worked, everyone would use it.
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Fatima Al-Suwaidi
•They use an automated system that navigates the IRS phone tree and stays on hold for you. It's not affiliated with the IRS - it's just a smart workaround for their understaffed phone system. Once an agent answers, they immediately connect the call to your phone so you can speak directly with the IRS agent. The IRS definitely doesn't endorse it - they probably aren't thrilled about it honestly. But there's nothing illegal about it. It's just using technology to solve the problem of ridiculous wait times. I was skeptical too, but when you've been trying to reach the IRS for weeks, spending a few bucks to avoid hours on hold is totally worth it.
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Sofia Morales
I need to eat my words and apologize to Profile 18. After calling the IRS 9 times and getting disconnected every single time after 1+ hour holds, I broke down and tried Claimyr. Got connected to an actual IRS agent in 37 minutes without having to sit by my phone. The agent pulled up my file and immediately saw what happened - my payment had been applied to the wrong tax year because my social security number was transposed on the check. She created a case to transfer the payment to the correct year and put a 60-day hold on collections. All resolved in one 15-minute call after MONTHS of frustration. I was 100% wrong about this being a scam. Consider me converted.
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StarSailor
For the original poster, one thing I haven't seen mentioned is filing Form 911 (Taxpayer Advocate Service request). When you have documentation that proves you're correct but keep getting the runaround, the Taxpayer Advocate can intervene. They're an independent organization within the IRS designed to help taxpayers resolve issues that normal channels can't fix. The service is completely free and they have the authority to cut through red tape. In situations with multiple conflicting explanations like yours, they're often the fastest path to resolution.
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Mei Lin
•I've never heard of Form 911 or the Taxpayer Advocate Service. Is this something anyone can use? And how long does it typically take to get a response from them?
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StarSailor
•Yes, anyone can request help from the Taxpayer Advocate Service, though they prioritize cases where taxpayers are experiencing financial hardship, immediate threats of adverse action, or situations where they've tried normal IRS channels without success - which definitely applies to your case. Response times vary greatly depending on their caseload and the complexity of your situation. Currently they're taking about 4-6 weeks for initial response, but they can place holds on collections while they investigate. The best part is you'll get assigned a specific advocate who handles your case personally, so you're not explaining your situation to a different person every time. You can find the form and contact information on the IRS website by searching "Taxpayer Advocate Service.
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Dmitry Ivanov
Has anyone considered the possibility that you might actually owe the taxes? I'm not trying to be rude, but the IRS doesn't usually make things up completely. Maybe check if there was income reported on a 1099 or W-2 that you forgot about? Sometimes employers or banks submit forms you never received.
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Ava Garcia
•This is actually a good point. I once had a similar issue and it turned out a former employer had submitted a corrected W-2 that showed $2k more income than the original one I received. I never got the corrected copy but the IRS did! Worth checking your wage and income transcript too.
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