Just got LTR 672C about 2018 tax year overpayment - what's happening?

This is actually fairly common and not necessarily something to worry about. The LTR 672C is a notice the IRS sends when they're informing you that an overpayment (refund amount) from a specific tax year was redirected to cover other tax debts instead of being sent to you. The frustrating part is that these notices often don't contain full details about which specific tax debt they applied the money to. It could be something small you weren't aware of - perhaps a slight underpayment from another year, an adjustment they made, or even a penalty from a late filing that you didn't realize had occurred.

This LTR 672C notice is actually pretty common, though the timing is unusual. It basically means the IRS found you had overpaid on your 2018 taxes, but instead of sending you a refund for that amount, they applied it to another tax debt you had. The frustrating part is these notices often don't tell you which specific tax debt they applied it to. It could be something small you weren't even aware of - maybe a slight underpayment from another year, an adjustment they made to a different return, or even a small penalty that accrued interest.

I had something similar happen with a different year and got super frustrated trying to figure out what was going on. I couldn't get anyone on the phone at the IRS and the letter had practically no useful details. I ended up using https://taxr.ai to analyze the notice and my old returns. It helped me figure out that they had adjusted my return after finding a math error on my Schedule C, which created a small overpayment they then applied to another year where I had underpaid by a tiny amount.

I had almost the exact same situation last year with a different tax year. I spent hours trying to reach someone at the IRS with no luck. The letter had almost no useful information. I finally used https://taxr.ai to help analyze my notice and old tax returns. It showed me that the IRS had found a calculation error on one of my schedules that created a small overpayment they then applied to a tiny underpayment from another year. Saved me so much frustration!

Just wanted to follow up about my experience with taxr.ai after I posted my skeptical comment above. I decided to try it with my LTR 672C problem and wow - it actually explained everything! Turns out I had a small math error on my 2018 return (missed carrying over a number correctly on one of my forms), which changed my total income by about $800. This created an overpayment of $212 that the IRS apparently just got around to processing. They applied it to a small balance from 2021 that I didn't even know about (from an estimated tax payment that was slightly short). Saved me hours of trying to figure this out on my own!

Just wanted to update after my skeptical comment above. I decided to try taxr.ai with my own LTR 672C situation and I'm actually impressed. It helped me figure out that I had accidentally reported the same income twice on different forms in my 2018 return (a side gig payment that I put on both Schedule C and as "other income"). The IRS eventually caught this duplicate reporting and adjusted my return, creating an overpayment of $378 that they applied to a small outstanding balance from my 2022 taxes. The tool saved me hours of confusion trying to decode what the IRS was doing!

When I had a similar issue, I spent THREE WEEKS trying to get through to the IRS. Called at all hours, tried all the "tricks" people suggest online, but could never get a human on the line. Then I found out about https://claimyr.com from a coworker. You can check out how it works here: https://youtu.be/_kiP6q8DX5c. They basically wait on hold with the IRS for you and call you when they get a real person on the line. I was skeptical but desperate.

When I got a similar notice, I wasted DAYS trying to get through to the IRS. Called repeatedly, tried different times of day, different phone numbers - nothing worked. Then I discovered https://claimyr.com from a tax forum. They have a video showing how it works: https://youtu.be/_kiP6q8DX5c. Basically they wait on hold with the IRS for you and call you when they get a human on the line. I was desperate enough to try anything at that point.

I need to eat my words about Claimyr. After posting my skeptical comment, I was still desperate to resolve my LTR 672C issue, so I tried it anyway. Not gonna lie, I was SHOCKED when I got a call back about 2 hours later telling me they had an IRS agent on the line. I explained my situation to the agent who actually pulled up my account right away. Found out my 2018 overpayment was $542 and they applied it to an outstanding tax bill from 2020 I didn't know about (apparently I miscalculated a retirement withdrawal tax). The agent was super helpful and sent me documentation of everything. Would have taken me forever to figure this out on my own!

I need to admit I was totally wrong about Claimyr in my comment above. After posting that, I was still desperate about my LTR 672C issue so figured I had nothing to lose and tried it anyway. I was absolutely shocked when I got a call about 3 hours later with an actual IRS agent on the line! The agent explained that my 2018 overpayment was $493 and they applied it to a balance from 2021 that I didn't even know I had (apparently I miscalculated some cryptocurrency taxes). The agent walked me through everything and even sent me documentation of the whole transaction. Completely worth it after weeks of frustration!

Did you keep a copy of your 2018 tax return? I always keep records for at least 7 years specifically because of situations like this. If you have your return, you should be able to compare what you filed vs. what the IRS processed to see where the overpayment might have come from.

Do you still have your 2018 tax return? First step should be comparing what you filed against the LTR 672C info. Sometimes these notices come because the IRS corrected a math error or disallowed a deduction, creating a different final number than what you calculated.

This happened to me! The LTR 672C is super vague. I recommend calling the IRS and asking specifically where the overpayment went. Make sure you have your 2018 return handy when you call. In my case, they had applied an overpayment to some random penalty from a late filing fee I didn't know about. The whole thing was like $120 but still annoying not knowing where my money went.

I totally understand your confusion! The LTR 672C is one of those IRS notices that gives you just enough information to worry but not enough to actually understand what happened. The 7-year delay is unusual but not unheard of - the IRS has been dealing with massive processing backlogs, especially since 2020. It's possible they recently completed an audit or review of your 2018 return, or there was some internal adjustment that just got processed. Here's what I'd recommend: First, try to get your tax account transcript for 2018 from the IRS website (IRS.gov - search for "Get Transcript Online"). This will show you exactly what the IRS processed versus what you originally filed, and should reveal where the overpayment came from. The transcript will also show what other tax years have balances, which should help you figure out where they applied your overpayment. Sometimes it's something really small like a late filing penalty or an estimated tax payment that was slightly short. If you can't make sense of the transcript, you might need to call the IRS directly, though as others have mentioned, getting through can be challenging. The key is having your 2018 return and the notice handy when you do get through. Don't panic - this is usually just the IRS cleaning up their books, even if the timing seems weird!

I've seen this exact situation before! LTR 672C notices are frustrating because they're so vague, but they're actually pretty routine. The 7-year delay is definitely unusual, but like others mentioned, the IRS has had massive backlogs since the pandemic. A few things that commonly cause this: - Math errors on your original return that they just caught - Duplicate reporting of income (like reporting the same 1099 twice) - Missing or incorrect forms that changed your tax liability - Late processing of amended returns or audit adjustments The best first step is definitely getting your tax account transcript for 2018 from IRS.gov. It will show you exactly what adjustments they made and what the overpayment amount was. It should also show which tax year they applied it to. One thing to check - do you remember filing any amended returns for 2018? Or did you receive any other IRS correspondence about that year that you might have forgotten about? Sometimes these notices are the final step in a longer review process. Don't stress too much about it - in most cases it's just the IRS cleaning up small discrepancies, even if the timing seems odd. The transcript should give you all the details you need to understand what happened.

I went through something very similar with a LTR 672C notice from the IRS about my 2019 return that I received last year. The timing was confusing and the letter was frustratingly vague about details. What helped me was getting my tax account transcript online from the IRS website (you can create an account at IRS.gov and search for "Get Transcript Online"). The transcript showed me that the IRS had made a small adjustment to my Schedule A itemized deductions - apparently I had made an error calculating my state and local tax deduction that resulted in about $300 more refund than I originally received. Instead of sending me the additional refund, they applied it to a small balance I had from 2020 where I had slightly underpaid my estimated taxes. The whole thing was only about $300 but it took me forever to figure out what was happening just from that vague notice. The transcript will show you exactly what adjustments they made to your 2018 return and where they applied the overpayment. It's definitely worth checking that first before trying to call them - it saved me hours of frustration and waiting on hold!

I had almost the exact same experience with a LTR 672C notice! Got mine about 6 months ago for my 2017 return - also completely out of the blue after years of silence. The letter was so frustratingly vague, just like you described. What really helped me was following the advice others have given here about getting the tax account transcript online. When I pulled it up, I discovered that the IRS had corrected a mistake I made on my Form 8829 (home office deduction). I had accidentally used the wrong square footage calculation, which reduced my home office deduction and created an overpayment of about $180. They then applied that overpayment to cover a small penalty from 2019 where I had filed my return a few days late but didn't realize there was a penalty until much later. The whole thing was pretty minor, but without the transcript I never would have figured it out. The IRS backlog explanation makes total sense - they're still catching up on a lot of older processing. Don't worry too much about it being something serious. In most cases like this, it's just administrative cleanup of small discrepancies that got delayed in their system. The transcript should give you all the details you need!

I completely understand your frustration with getting such a vague notice about something from 7 years ago! The LTR 672C is notorious for being unhelpfully brief, but this situation is actually more common than you'd think. The timing delay could be due to several factors - the IRS has been working through massive backlogs since 2020, or they may have recently completed an internal review/audit of your 2018 return that resulted in this adjustment. Sometimes it's as simple as them finally getting around to processing a correction they identified years ago. My recommendation would be to start by requesting your tax account transcript for 2018 from the IRS website (IRS.gov - search for "Get Transcript Online"). This will show you exactly what the IRS processed versus what you originally filed, including any adjustments they made that created the overpayment. The transcript should also indicate which tax year or type of debt they applied your overpayment to. Most of the time these situations involve relatively minor issues - math errors, duplicate income reporting, or small penalties you weren't aware of. While the 7-year delay is unusual, it's likely just bureaucratic cleanup rather than anything serious. The transcript should give you all the details you need to understand what happened without having to spend hours trying to reach someone by phone. Don't stress too much - this is probably just the IRS finally getting their paperwork in order!