IRS lost taxes but cashed check

[Kabow]

Hello all,

My client mailed his 2019 taxes along with a check to IRS in Nevada in January 2020. Several months later got a notice that he has a credit in the amount of the check, however they need him to send his tax return. He mailed it, along with a copy of the canceled check and the notice. a few months later, he got a second notice saying we need your tax return. on the IRS website they still show not received.

He did not receive his stimulus check as a result. He has spent three days this week alone on hold for at least a hour finally getting through today only to be put on hold and then disconnected. This is criminal!

Do my wise fellow accountants have any advise? What more can he do? Have you come across this in your practice?

[IRonMaN · Accepted solution]

The returns are sitting in the rubble of the 9 bazillion pieces of mail that the IRS accumulated last year.  Have you tried calling the practitioner's hotline?

As for the stimulus payment, you are aware that your client will receive it once their 2020 tax return is filed?

[Just-Lisa-Now-]

Well, hes mailed them twice now, and IRS is still backed up on opening mail, so they may be just sitting in there somewhere.

Get a signed 8821 from him and you call PPS and see if they recommend waiting it out, mailing another copy, or Efiling once IRS opens on Feb 12th.  At minimum they can add some notes to his file.

[BobKamman]

Nevada?

Treasury closed the Carson City mint, many years ago.

Maybe Utah?  But that's not where balance-due returns were supposed to be mailed.  

[Just-Lisa-Now-]

Nevada sounded weird to me too, but I cant keep up on all the addresses.

[Kabow]

You are correct, My bad

[qbteachmt]

The IRS has been pushing out notices since last Fall explaining that the notices, such as "we need your return" are automated and would be ignored, because they also understand it is their own backlog that is the bottleneck. So, now that the return has been sent multiple times, I would stop doing anything and wait until something else happens, such as, they find and process that return.

Are you signed up for the e-newsletters that are the method for getting the notices?

Government e-newsletter signup

Such as:

https://public.govdelivery.com/accounts/USIRS/subscriber/new?preferences=true

For a bunch of portals. You are likely going to want IRS, Payroll, SBA, DOL. Here is a list from that link I provided: You get to checkmark what you want to get for notices.