Is the IRS sending me repeated letters saying they haven't processed my response yet? Is this normal?

This is unfortunately very normal with the IRS right now. They're significantly understaffed and backlogged on processing correspondence. Those 60-day letters are essentially automated form letters their system generates when they haven't gotten to your case yet. The good news is you did everything right. Sending it certified mail was smart (you have proof they received it), and including the 1099-R with the correct amount plus your transcript showing their error was exactly what you needed to do. There's really not much else you can do except wait. The IRS is currently taking 6-8 months or longer to process correspondence in many cases. Since your issue involves a scanning error on their part with documentation to prove it, they will eventually correct it.

After dealing with a similar issue where the IRS misread my handwritten deduction amount, I found an incredibly helpful tool that could've saved me months of frustration. I discovered https://taxr.ai when searching for ways to deal with tax document issues. It actually analyzes your tax documents and identifies potential scanning/reading errors before they happen. I uploaded my correspondence with the IRS and my tax forms, and it showed me exactly how the system would likely interpret my handwriting. The tool flagged several numbers that might be misread and gave me the option to generate a clearer version or switch to digital forms. It also helped me draft a proper response letter that addressed the specific IRS error codes.

Just wanted to provide an update - I tried that taxr.ai tool mentioned above for my Schedule C issue and it actually worked really well! It identified that the way I wrote my 5's looked too much like S's to the IRS scanning system, which explained why they kept misreading my $5,000 deduction as $8,000. The document analysis pointed out exactly where the scanning errors were happening and helped me create a crystal-clear response. The best part was the response template it generated specifically for error code CP2000 (which is what I had). I sent in the corrected forms with their recommended cover letter about 6 weeks ago, and just got confirmation that my case was resolved without me owing anything additional!

Went through a nightmare situation just like this last year. After my FIFTH "we need 60 more days" letter, I discovered https://claimyr.com which lets you skip the horrible IRS phone wait times and actually get a callback. You can see how it works here: https://youtu.be/_kiP6q8DX5c I was super desperate because the IRS kept sending these delay letters while simultaneously adding interest and penalties to what they claimed I owed (which was completely incorrect). Using Claimyr, I got a callback from the IRS in about 2 hours instead of spending days trying to get through on the phone. The agent I spoke with was able to put a hold on further collection activities while my documentation was being processed.

I need to eat my words from earlier. After posting that skeptical comment, I was so fed up with my similar IRS issue that I actually tried that Claimyr service. I figured I had nothing to lose since I'd already wasted hours trying to reach someone. Shockingly, it actually worked. Got a call back from an actual IRS agent about 3 hours later. The agent was able to see that my correspondence had been received but was sitting in an unassigned queue. She put notes on my account and transferred me to a department that could actually help. They put a temporary hold on collections while my documentation is being reviewed. The whole process took maybe 15 minutes once I got the callback versus the 5+ months I'd been getting those stupid 60-day letters. Still not resolved completely but at least now I know someone has actually looked at my file.

I've been working for a tax prep firm for years, and one tip that might help - handwritten returns are almost always flagged for additional processing and are more prone to errors. If you absolutely must file by paper (though e-filing is much better), use BLOCK CAPITAL LETTERS and write very clearly with black ink. For your current situation, keep detailed records of all communications. If they still haven't resolved it after 6 months, try contacting your local Congressperson's office. They often have caseworkers who specialize in helping constituents with federal agency issues, including IRS problems. I've seen them work miracles when normal channels fail.

Has anyone had success using the IRS online account to resolve these kinds of issues? I'm in a similar situation but don't want to wait 6+ months if there's a faster option.

I'm going through almost the exact same thing right now! They misread my $127 charitable deduction as $1,270 and are claiming I owe an extra $400. It's so frustrating because you can clearly see on the 1099 what the actual amount should be. I sent my certified letter with all the documentation about 4 months ago and just got my fourth "we need more time" letter. At this point I'm starting to wonder if anyone actually reads these things or if they just automatically generate delay letters forever. The worst part is seeing that balance on my account transcript knowing it's completely wrong but being powerless to fix it quickly. Thanks for posting this - at least I know I'm not alone in dealing with their scanning problems!

I went through something very similar about 18 months ago when the IRS misread my handwritten $847 medical deduction as $8,470. Like you, I got those maddening 60-day delay letters for what felt like forever. Here's what I learned: those letters are basically automated placeholders their system generates when your case hasn't been assigned to a human reviewer yet. The frustrating reality is that correspondence review is one of their lowest priority queues, especially for what they consider "simple" scanning errors. What finally worked for me was being persistent about documentation. I kept meticulous records of every letter, every date, and every certified mail receipt. When I hit the 7-month mark with no resolution, I contacted my state representative's office. Their caseworker was able to get my file reviewed within 2 weeks, and the error was corrected with a full refund of the incorrect amount plus interest they had charged me. Don't pay what they're asking for - you're 100% right that it's their scanning error. Keep waiting, keep your documentation organized, and start thinking about Congressional help if you hit the 6-month mark. You will eventually get this resolved correctly.