IRS Gridlock

[lancermc]

Am looking for a solution where so far I have come up with none. TP is a wealthy individual, always paid income taxes via ES payments and stayed way ahead of liabilities. In 2019 incomes dropped. TP decided to request 1/2 of a large overpayment be refunded. The 2019 tax return was E-filed in June 2020. Its been over a year now and this return is still "In Process". We cannot contact the IRS by phone of course, and the IRS has not contacted us.

To add salt to the wound, TP E-filed 2020 in March 2021. Overpayment on that return is applied to 2021 ES. TP received a letter stating there was an identity issue and the return could not be processed unless TP logged in, set up an account, and obtained a ID verification clearance. TP and I spent hours trying to set up the on line account, and we were unable to as the IRS portal continued to baffle us, and then simply locked up. Next we called in to the number on the letter, and the message stated due to high call volumes for this service the IRS is not taking calls. 

Of course for those of us who have been in the business for decades this is simply outrageous. The only response I have to this situation that makes sense is "WTF!.

I am reaching out to the community to see if anyone has suggestions other than just wait, which is what we are doing now. I have considered contacting the TP Advocate but google searches indicate that would also receive little if any response.

Thank you,

Lance McMahon, CPA

[BobKamman]

Best way to get to the Taxpayer Advocate is through a Congressional.  You have two Senators and a House member.  Pick one (look for Finance Committee or Ways & Means, although if your client is a donor that might help).  

Were you tracking the 2019 refund until it dropped off "Where's My Refund"?  And now, some 2019 returns are showing up there again, if no 2020 refund has been processed. My guess would be that one or more of the ES payments for 2019 were not credited correctly.  

[CJR]

We have used CallENQ this year for IRS matters and it has truly been a life saver.  Have used multiple times for identity verification letters with clients and have not had any issues ever getting connected to an agent.  Well worth the money and peace of mind in my opinion  https://callenq.com/

[lancermc]

2019 did drop off Where’s my Refund. Will check today to see if back on.

My suspicion agrees there must be some payment(s) not applied correctly.

[Just-Lisa-Now-]

and you CallNQ people are jumping to the front of the line so everyone else gets pushed back, thanks.

[qbteachmt]

If your client has frozen their credit, the IRS cannot use any of that info for verification. Did you see all the possible ways to get the account established, even if it has to be a one-time USPS code:

https://www.irs.gov/individuals/secure-access-how-to-register-for-certain-online-self-help-tools

[BobKamman]

@Just-Lisa-Now-  It's the American way.  Like paying homeless people to stand in line overnight so you can take their place in the morning for WalMart doorbuster specials on Black Friday.  

The former NTA has some thoughts about IRS taxpayer service this morning:

https://procedurallytaxing.com/the-current-state-of-taxpayer-service-or-lack-thereof-at-the-irs/

[lancermc]

Good idea. Will look in to this. TP tried to do it themselves and it locked up right after the credit report check. Now they cannot get back in. These alternatives are worth a look.

[lancermc]

I can see how this would be very useful for a full service tax practice. 

[qbteachmt]

Pay attention to the "enter your address exactly as it appears" because some of these portals even want ALL caps.

[Just-Lisa-Now-]

Ive copied and pasted directly from the clients tax return to the address line on the website and still got a mismatch message, I think the IRS must use some kind of standardization of addresses that needs to be matched.

[lancermc]

I know it’s just nuts. You have to stand on one leg on a Tuesday under a full moon for God’s sake, and nothing seems to work. We called the backup number on the letter, and drum roll please, the recording says that there is so much demand for this particular service they are not taking calls. The only good news I can think of is at least we know the returns are received, and that starts the clock on assessment and interest in refunds and the like.

[Swaldrep · Accepted solution]

Regarding the ID verification letters, I can't count the number of ID verification letters I've dealt with since April this year.  The only way I've gotten through to them is when I get the message they're too busy, I hang up and redial until I get put on hold, often having two phones calling at once.  If the automated system offers to call you back, don't push anything.. I've had the WRONG line call me back and we had to start all over. The line that called back was the general line to the IRS and the number on the letter is the only one that will be able to verify their identity.  It's taken me anywhere from 30 mins to 3 hours to get someone on the phone.  Once they're on the phone though, it only takes 20 mins.  Make sure the TP is there as well, even if a 2848 is sent in. They ask questions that are prompted by the computer (often personal questions, ie mother's maiden name, father's name, etc), and if you get it wrong or don't know, the process stops and TP has to go to an in person interview at an open (good luck finding one close) IRS office.

We've also started seeing letters come in now for TP who have paid their 2020 taxes, the checks are cashed, with TP SSN, TY and Form# in the memo, saying TP hasn't paid their taxes due and is now charged with penalty and interest. 

I agree with your response on them. It's an absolute mess this year.