Has Anyone Else Seen IRS Bills Like This?

[BobKamman]

When a client in her 90s calls to ask what to do with the bill she received from IRS for 75 cents, don’t immediately assume she’s the one with a problem.

She filed the return in early March, with a 1040-V and a check for $28. Today she received a notice that she owes five months of late-payment penalty, 2.5%, which comes out to 69 cents. (OK, I get 70 cents, but I'm not using the IRS computer.) And then they add 6 cents interest, so the balance due is 75 cents.

If they didn’t get the payment by April 15 they didn’t get the return either, but they’re not assessing late-filing penalty.

I asked if she had noticed when IRS cashed her check, but she hadn't tracked that.

Has anyone else seen this? IRS doesn’t get free postage, so with paper and envelope it cost them more than 75 cents to send this. WWES (what would Elon say?).

[IRonMaN]

Look at the bright side.  At least no chainsaw carrying DOGE members have shown up at her front door demanding collection ------------------- at least not yet anyway.

[dkh]

I've not seen IRS bills, but I am seeing IRS notices that make no sense.

Client received letter reminding them to file their 2024 tax return.  Return has been filed and refund received.  WWES........." I'm responsible for this mess "    

Client received letter for 2021 tax return.  Acknowledging receipt of estimates/extension payments of $41,600 but states they do not have enough information to apply payments correctly.    Return has been filed; overpayment has been applied to 2022. 2022 processed without a problem.                          WWES......"Yep, my DOGE team did this too."

[sjrcpa]

"Client received letter reminding them to file their 2024 tax return."

I've seen a number of these. Some clients have valid extensions. Some clients already efiled and were accepted months before the date on the letter.

[sjrcpa]

@BobKamman I have not seen a bill like this.

Once upon a time I think there was a rule that said if <$1 you don't have to pay it. Nor would they refund it. Probably not in effect now.

I have a client who received an IRS check for $.05 several years ago. She didn't cash it and they resent it.

[BobKamman]

I think IRS writes off any balance owed of $5 or less, but it's been so long since I have thought that, I couldn't tell you the source. 

Meanwhile, I did a 2021 return for the PR of a deceased nonfiler.  Filed it a couple months before the statute expired in April 2025.  Filed 2022, 2023 and 2024 returns a few weeks later, and those refunds were issued promptly.  For 2021, IRS sent a notice saying that nothing would be paid until the decedent called to verify his identity.  In May I asked the Austin SC Taxpayer Advocate to look into it, and last week the check was received.