Received a notice from the IRS last week that I had a credit sitting on my account. The letter then proceeded to me that the IRS had not received my 2020 tax return. That's funny - the credit on my account matches the check I wrote them last April. Rechecked delivery receipt from USPS and it was indeed delivered in early April. I call the IRS - no one available to pick up a phone. (waited 75 minutes). Emailed their inquiry line - no response.

I made copies of all the original documents from April 2021 along with a descriptive letter and resent everything on February 23 via 2 day USPS priority. Scheduled delivery date is February 26th. I check the tracking status Monday. System tells me it is in KC (destination) but going to be late. Same answer yesterday and same answer this morning. I call the USPS and the CS Rep opens a "ticket" for me but can't tell me where the freaking package is.

Can our Government get any more incompetent?

Did the IRS really lose my return inside their own offices?

Unreal.

The IRS took the check out of the envelop and set the return to the side to be processed. According to the Washington Post, as of Jan 28, 2022 the IRS had 9.7 million paper returns awaiting processing.

You probably received a computer generated letter. The AICPA (basically a trade organization for CPAs) has a massive movement asking CPAs to encourage their clients to write to Congress asking the IRS to suspend automatic notices until they get caught up on processing what they have. Link

Thanks SR - appreciate the info.

Their letter told me they were going to credit what I owed them back to me and and consider my 2020 return "not received". A letter simply stating my return was still "in process" might have been nicer to receive.

I feel your frustration. IRS received my 2020 return in March 2021 (certified mail tracking), but months later I couldn’t find out anything about it. Online IRS system kept saying we have no information on it, so I just kept waiting. Less than 2 weeks ago I get a Treasury payment deposit which appears to be my 2020 refund with an additional 2.5% interest payment. No communication whatsoever from IRS, so it’s just my guess that’s what it was! Why we pay these IRS incompetents more than fast food employees is beyond me.

There was a discussion of this exact IRS issue fairly recently in this forum Use Google to find it. From MY recollection thousands of taxpayer received letters stating that they had not received returns. Said to disregard.

quote:

2.5% interest payment.

Wow - 2.5% interest. Surprised they are paying that much.

As I said, there was no communication about it from the IRS to me. If my return was accepted as correct, then they gave me 2.5% more than my refund should have been. If I had an error they caught and they increased my refund as a result, then it may not be interest. No idea, I’m guessing!

I also received the same credit notice stating that the IRS had cashed my payment check, but did not have my return and hence, did not know which return account to apply the payment to. Of course, that check was attached to my 2020 return. Last weekend, I gathered up all of my documents to resubmit the 2020 return. I checked the IRS web site first and there is a statement on the site that says if you received the notice for the 2020 return, do not resubmit the return. The IRS is a social and political abomination - it's time for a flat tax or consumption tax to rid us of this incompetent bureaucracy.

Then I guess it doesn't matter if my resubmitted package actually makes it their KC offices. At least I can feel better about that. Thx.

This is a great illustration of the advantage of filing electronically even if you've not in the past. You get confirmation of receipt once accepted.

quote:

Originally posted by randyman:
it's time for a flat tax or consumption tax to rid us of this incompetent bureaucracy.

This would not fix the problem. It would only substitute one bureaucracy for another. All three (the current system, flat tax, and consumption tax) all have downfalls.

BTW, the recent change to increase the standard deduction has eliminated itemized deductions for many individuals. At least for individuals that are wage earners, this has greatly simplified their tax returns.

Yes it has - but I pay more under the new plan than I did 5 years ago.

quote:

Originally posted by SR:

quote:

Originally posted by randyman:
it's time for a flat tax or consumption tax to rid us of this incompetent bureaucracy.

This would not fix the problem. It would only substitute one bureaucracy for another. All three (the current system, flat tax, and consumption tax) all have downfalls.

BTW, the recent change to increase the standard deduction has eliminated itemized deductions for many individuals. At least for individuals that are wage earners, this has greatly simplified their tax returns.

Between the new tax changes eliminating me doing itemized deductions and retiring from my business and thus not having to do a business return, it's really simplified things for me.

Now I essentially just plug in retirement income and SS and RMD's and of course, Dividends, losses and gains and I'm done.

I like it.

The Taxpayer Advocate yesterday in one of my weekly professional updates said they have 2 million 2020 paper returns for 2020 yet to be processed. They will not process any 2021 paper returns until they get through that backlog. OUCH!

Lesson is, e-file!

Even if you don't have a Pro prepare the return, you can get a Pro to e-file. But, if you are at that point, you ought to hire the Pro to just do the damn return and e-file it. Cheap doesn't cut it in the present situation. From my perspective it definitely will be as expensive for me to e-file your taxpayer prepared return as it would be if I did the return! Now, perhaps some of the strip-center Tax places would differ. IDK about that.

We are not doing ANYTHING on paper if there is a way around it. That includes correspondence.

Good Luck!

E-file doesn't cost anything - I actually spent more money ($8.95) on 2-day priority form USPS.

This year I will e-file for sure.

quote:

Originally posted by Graniteguy:
E-file doesn't cost anything - I actually spent more money ($8.95) on 2-day priority form USPS.

This year I will e-file for sure.

If you use TurboTax as I do, E-File is free and has been for as long as I can remember.

I think I'll send in a paper return just to keep the boys and girls at the IRS busy.

quote:

Originally posted by Graniteguy:
($8.95) on 2-day priority from USPS.

I can tell you USPS 3-day priority isn't working out for me.
Shipped on 5th, due on 9th... has only made half the trip so far.
Grrr.

- - - - -

Update: today's the 10th... the 3-day package finally made it.

This message has been edited. Last edited by: vthoky,

I received my 2020 refund on March 2nd. I mailed it on April 13, 2020. Enough said.