@Username is two words

Patience! Will be rewarded. Remember back in early 2021 when IRS finally admitted that the $125,000 income limit, for exclusion of unemployment benefits, was the same for MFS as MFJ? And some of us were filing superseding returns to change from joint? I had clients who did that. Of course IRS screwed it up. They didn’t split the ES payment, so they sent a bill instead of a refund check to one spouse. We pointed out the error, and just last week the clients received most of their refund, with lots of interest included. And it only took about 18 months.

I had another MFJ return that would have saved from switching to MFS, but based on the amount reported on the 1099-G the savings would be only about $500 and the return was complicated with Schedules C, D, E and SE. After the filing deadline, the state sent a corrected 1099-G with about twice as much income reported. So we filed an amended return in September 2021, once the refund on the original return was paid, with a $500 payment. In August 2022 IRS sent a bill for an additional $420, with no explanation. We invested $60 in a Tax Court filing fee, and of course IRS is disputing that the CP22A is a notice of deficiency. But they admit that the tax examiner who processed the 1040-X used the wrong worksheet, figuring the tax without considering qualified dividends and LTCG.

Filing a Tax Court petition didn’t prevent IRS from collecting the illegal assessment from the 2021 refund. But the Counsel attorney managed to get this refunded before filing a motion to dismiss late last month. I filed an objection to that motion, and the Court has given Counsel until next week to respond. My return preparation fees include assistance with IRS problems, and this was the quickest way to solve one. I’m not that patient.