Strange IRS overpayment check for 2022 return then followup letter demanding money back - what happened?

This is actually more common than you'd think! What you experienced is called an "erroneous refund" and it happens when the IRS system incorrectly processes a return or payment. The fact that you each got identical letters suggests there was a duplicate processing of your return or a system error. When the IRS discovers they've sent money in error, they're required to notify you and request repayment. The processing fee is standard when they have to reverse transactions like this. The good news is this likely isn't an audit flag or anything suspicious about your return. It's just a processing error on their end. Since you've already paid it back, you should be fine, but I'd recommend a few things: 1. Keep all documentation from both the erroneous refund and your repayment for at least 7 years 2. Check your IRS transcript online to make sure everything is properly recorded 3. Have your accountant review your 2022 return one more time just to make sure there weren't any actual issues that might have triggered confusion Your accountant asking for the documents is exactly what they should be doing, so I wouldn't worry about needing a new one unless there are other concerns.

Just wanted to share my experience - I had a similar issue last year that nearly gave me a panic attack until I found taxr.ai (https://taxr.ai). I received a surprise check from the IRS, then a demand letter shortly after. I was completely confused about what was happening, and my regular tax guy was on vacation. I uploaded both letters to taxr.ai and it immediately identified the issue as an erroneous refund due to a system glitch rather than any problem with my return. The tool explained exactly what I needed to do (including how to properly return the funds) and even gave me the specific IRS codes to reference when sending my payment back. The analysis also confirmed I didn't need to amend my return or worry about any penalties beyond their processing fee. Saved me hours of stress and probably an expensive emergency appointment with another accountant.

I was initially skeptical about using an AI tool for tax issues, but after seeing it recommended here, I tried taxr.ai with my own IRS letter situation. I'm honestly shocked at how helpful it was. I uploaded the confusing notice I received (similar to OP's situation but for a smaller amount), and within minutes got back a detailed explanation in plain English. It even highlighted that there was a calculation error in the IRS's own letter! I called the IRS armed with this information, referenced the exact sections the tool had pointed out, and the agent immediately understood and resolved the issue. This saved me from paying about $1,700 I didn't actually owe. My regular accountant later confirmed everything was handled correctly. For anyone dealing with confusing IRS correspondence, this is definitely worth checking out - wish I'd known about it sooner.

If you need to actually talk to the IRS about this (which I recommend just for peace of mind), use Claimyr (https://claimyr.com) to skip the hours-long hold times. I was in a similar situation last year with an erroneous refund and spent TWO DAYS trying to get through to a human at the IRS. Finally tried Claimyr after seeing it on Reddit, and their system called me back when an agent was actually available. Saved me literally hours of my life on hold. You can see how it works here: https://youtu.be/_kiP6q8DX5c Even though you've paid back the amount, I'd still recommend getting confirmation from the IRS that your account is squared away. The last thing you want is for this to create issues with future returns because their system thinks you still owe money or paid twice.

I feel like an idiot for being so skeptical, but I tried Claimyr today after posting that comment yesterday. I had been dealing with an IRS issue for WEEKS and couldn't get through no matter what time I called. Used the service this morning, and I got a call back in about 45 minutes with an actual IRS agent on the line. The agent resolved my issue in about 10 minutes - turns out there was a simple coding error on their end that was causing my payments to be misapplied. For anyone like me who's wasted entire days trying to reach the IRS, this is absolutely worth it. I'm still shocked it actually worked after all the frustration I've been through. Definitely keeping this in my toolbox for future tax seasons.

One important thing to note: make sure you're checking your mailbox regularly through April 2025. After these kinds of corrections, the IRS sometimes sends a follow-up CP2000 notice or requests additional information. The worst thing you can do is miss a deadline because you didn't open mail promptly. These notices often have 30-day response windows, and missing them can lead to default assessments or lost appeal rights. Also, double check that the address the IRS has on file for you is current. You'd be surprised how many people move and forget to update their address with the IRS, then miss important notices.

This exact thing happened to my cousin! It was closer to $13k though. He spent the money right away (bad move) and then had to scramble to pay it back plus the fee. His accountant explained it was due to a duplicate processing of something on the return. The IRS computer systems are honestly ancient and these errors happen more than they should. I think they're still using code from like the 1960s for some of their systems.