clients receiving letters about carryback and the irs has adjusted their returns

[470pitt]

Trying to understand carryback or carryforward.  I have clients that are receiving letters that their 2020 taxes are being adjusted for this carryback application but we have not filed or had a carryback

Can someone explain

Thank you

[Just-Lisa-Now-]

what kind of carryback or carryforward? When you look at the 2020 return, do you see an amount that matches up with these notices?

[470pitt]

No the notice number is CP22A and all the letter says is they have adjusted the 2020 return based on the tentative carryback application or carryback claim you filed.  We did no file any application and they did not have a loss the prior year. The IRS doesn't give us figures except for how much more they owe

[Just-Lisa-Now-]

Ugh!  Ive got a client with a similar letter about that they show a balance due based on a change they say we made to 2020...we filed a 2019 amended return (paid in full) for the same thing they say 2020 was changed for, so Im guessing its a data entry snafu on IRS's end and theyve somehow attached the 2019 situation to 2020....been fighting with this for 6 months now, cant get a human on the phone and we all know how well the mail is being handled!   

Now theyve grabbed the 2021 refund and applied it to this erroneous 2020 balance due...its all such a mess!

[470pitt]

Lisa you are always so helpful I wrote letters asking for an explanation, however,like you said how long will that take should we just wait because we don't have any figures to go on or to correct.

[Just-Lisa-Now-]

I just sent another letter today. I spoke with the Tax Practitioner Service back in January, they couldnt make any sense of it, had me send a response in writing and they put a hold on the collections for 9 weeks hoping the letter would clear it up in that time frame, but it didnt!

Im not sure what to do anymore besides send them to out local office and see if they can get it fixed in person. I cant get through to PPS these days, cant even get into a holding queue!

[taxes96786]

The one my client got was actually referring to the self employed credit...the IRS denied 1/2 of what was claimed.

[Olympus Tax]

I just received one of those letters yesterday, and actually it is a request for payment on the S/E tax deferral that he chose on his 2020 tax return, and has not made the 12/31/2021 payment. the bill is for the exact amount plus interest . Why it is saying a carryback ****** only knows.

[Olympus Tax]

Look at line 14 of the 1040 Wks Deferral Smart work sheet on the last page of Part II. My client chose to use the two year deferral of the S/E tax on his 2020 tax return for his schedule C and didn't make his 12/31/2021 payment. It is the exact amount they are asking for plus interest. ??