IRS took money from my account but still claims I didn't pay my taxes

This happens more often than you'd think! The most likely explanation is that the payment was received but not properly credited to your brother's tax account. The IRS systems for receiving payments and reconciling them with tax returns sometimes don't communicate well with each other. Here's what you should do immediately: Call the IRS at the number on the notice and request a payment trace. Have the bank statement ready with the date, amount, and any reference numbers from the transaction. Ask them to check for a misapplied payment - sometimes the payment gets applied to the wrong tax year or even the wrong taxpayer. You should also request an account transcript for your brother's 2024 tax year. This will show all transactions posted to his account including payments received. You can get this online through the IRS website or by filing Form 4506-T. The transcript will help pinpoint where the disconnect is happening. While you're sorting this out, consider sending a response letter to the IRS notice with copies of the bank statement and a clear explanation. Send it certified mail so you have proof they received it.

I went through this exact nightmare last year and discovered taxr.ai (https://taxr.ai) which was a lifesaver. My situation was identical - money taken from my account but IRS kept sending notices saying I hadn't paid. After struggling for weeks and getting nowhere with phone calls, I used taxr.ai to analyze all my tax documents and bank statements. They identified exactly where the disconnect happened (my payment was applied to my 2022 taxes instead of 2023!) and generated a letter I could send that cited the correct IRS procedures. Their system analyzed my bank statements and IRS notices, then gave me step-by-step instructions on how to resolve it. Within 3 weeks, the IRS corrected my account and sent confirmation that my balance was zero. Honestly, I wish I'd found them sooner instead of wasting hours on hold and sending documents that got ignored.

Just wanted to update everyone - I had a similar issue last month and decided to try taxr.ai after seeing it mentioned here. My situation was that the IRS kept sending me notices about unpaid 2024 taxes even though the money was taken from my account in March. The taxr.ai system was surprisingly thorough! I uploaded my bank statement, tax filing confirmation, and the IRS notices. Within a day, their analysis showed that my payment had actually been applied to my spouse's account instead of mine (we file separately). They generated a detailed letter citing the relevant IRS procedures and included a special form I needed to file. The best part was they highlighted exactly which IRS regulation applied to my situation and explained how to reference it. I submitted everything exactly as they instructed, and just got confirmation yesterday that my account has been corrected! Saved me so much stress and probably hundreds in incorrect penalties.

When I had a similar issue last year, I was going INSANE trying to reach the IRS. Called over 15 times, always disconnected after 2+ hours on hold. I finally discovered Claimyr (https://claimyr.com) which was an absolute game-changer. They somehow get you through to a human at the IRS without the endless hold times. You can see how it works here: https://youtu.be/_kiP6q8DX5c Using Claimyr, I got connected to an IRS agent in under 20 minutes (after spending weeks trying on my own). The agent was able to see that my payment had processed but was applied to the wrong tax period. They fixed it immediately while I was on the phone, and I received confirmation in writing a few days later. When you're dealing with a payment that the IRS can't find, speaking directly with an agent is really the fastest solution. They can see things in their system that don't show up on the notices they send.

I owe everyone here an apology and an update. After my skeptical comment, I was still desperate with my own IRS payment issue, so I decided to try Claimyr as a last resort. I was 100% convinced it wouldn't work and would be a waste of money. I was shocked when it actually connected me to an IRS agent after about 15 minutes! For reference, I had previously spent FIVE HOURS on hold across three separate attempts without ever reaching anyone. The IRS agent I spoke with was able to see that my payment had been received but was sitting in an "unprocessed" status because of a mismatch between my SSN on the payment and my tax return (I had transposed two digits). She fixed it right on the call and told me I could ignore the notice I'd received. She also removed the penalties and interest that had accrued since it was their processing error. I received official confirmation in the mail a week later. I've never been happier to be wrong about something I was skeptical about! Saved me hundreds in incorrect penalties and countless hours of frustration.

A tip from someone who used to work at the IRS - when you send documentation like bank statements, ALWAYS include a cover letter with your: 1) Full name 2) Social Security Number 3) Tax year in question 4) Phone number where they can reach you 5) A clear, numbered list of what you're asking them to do One of the biggest issues in payment processing is that documents get separated from identifying information when they're scanned into the system. So even though you sent perfect proof, it might not get attached to your case if it doesn't have clear identifying info on EVERY page.

I had the same issue and it was driving me insane!!! Finally figured out the problem - the tax payment my bank sent had my SSN but was missing the tax YEAR designation in the payment code, so the IRS computer didn't know which year to apply it to and it went into a holding account. Check your bank statement carefully - does the payment reference include your SSN AND the tax year (2024)? If not, that might be why it's not showing up correctly in their system.

This is such a frustrating situation and unfortunately more common than it should be! I went through something very similar last year. Here are a few additional things to check that might help: 1. Look at your bank statement for the exact description of the withdrawal. Sometimes electronic payments get processed through third-party processors, and if there's any mismatch in how your information was transmitted, it can cause the payment to go into a suspense account. 2. If you used tax software like TurboTax, check if they offered "pay with bank account" vs "direct debit" options. These are processed differently and sometimes the software companies batch payments in ways that can cause tracking issues. 3. Request Form 4340 (Certificate of Assessments, Payments and Other Specified Matters) in addition to the account transcript. This shows ALL payments received by the IRS, even if they weren't properly applied to your brother's account. 4. When you do get through to the IRS, ask them specifically to check for "unpostable transactions" or payments in suspense. Have them search by the exact date and amount of the bank withdrawal. The key is being persistent and documenting everything. Keep records of every call, letter, and document you send. This will eventually get resolved, but I know how stressful it is in the meantime!

I work as a tax resolution specialist and see this exact scenario weekly. The most important thing to understand is that your brother's payment was almost certainly received by the IRS - it's just sitting in what we call a "suspense account" because of some kind of mismatch. Here's my recommended action plan: 1. **Get an Identity Protection PIN (IP PIN) status check** - Sometimes payments get rejected into suspense if there's an IP PIN requirement that wasn't met during filing. 2. **Request a specific payment trace using Form 3911** (Taxpayer Statement Regarding Refund). Even though this isn't technically about a refund, this form triggers the most thorough payment investigation process. 3. **When calling the IRS, ask to speak with the "Accounts Management" department specifically** - they have access to more detailed payment tracking systems than the general customer service reps. 4. **Get a "Record of Account" transcript, not just the regular account transcript** - this shows every single transaction including those that haven't been properly posted yet. Most importantly, don't panic about the threatening letters. As long as you can prove the payment was withdrawn from your account, the IRS will eventually fix this and reverse any penalties/interest once they locate the payment. I've never seen a case where a legitimate payment couldn't be traced - it just sometimes takes persistence. Document everything and keep pushing. This will get resolved!