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Unusual Circumstance-E Filed Return

taxea96786
Level 7

Here is a situation I encountered-thought the community may be interested.

I e-filed a 2018 1040 for a client with a refund due. The acknowlegement was received in a timely manner and I have all the documents that say the IRS accepted the filing.

This year, after e-filing the 2019 return, my client received an IRS notice informing him that they would not process his 2019 refund until his 2018 return was filed. This notice was sent from an east coast service center.  Client is located in Hawaii so normal service center is Fresno. The notice was replied to with all verifying documents included.

Then, a month or so later, he received a similar notice from the Austin Service Center...this was replied to in the same way including a letter of explanation that he had already received a like notice that had been responded to.

Several weeks later, a like notice from California service center.

To date we have received no response to our replies which were all mailed USPS RRR and Certified Mail.

I am at a loss as to what is happening. I have been an EA for over 20 years and have never encountered anything like this.

My only thought is to file forms to have the IRS search for his refunds for the two years in question. 

What do you think?

 

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dkh
Level 11

Did your client receive the refund for the 2018 return? Was the 2018 return efiled in 2019 or in 2020?   If it was filed in 2020, possibly the return is tagged for further review or identity verification. And unfortunately due to the close down for the pandemic, IRS is behind on those processes.   

That doesn't explain why your client is receiving notices from several service centers - weird!

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13 Replies 13
Just-Lisa-Now-
Level 15
Level 15

Sounds like the Efiled return got sucked into the internet abyss somehow. 

How long ago did the 2018 return get Efiled?


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
taxea96786
Level 7

It was efiled 07/18/19 and accepted within 24 hours. Client is checking with bank to determine if and when refund was deposited.

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BobKamman
Level 14

I always have to wonder about taxpayers who file a return claiming a refund, then don't bother to follow up on whether it was received.  

What is the filing status for 2018 and 2019?  I smell a spouse.  

dkh
Level 11

I had a client that called all bent out of shape because they never received their refund.  This was 6 months after return was efiled.  IRS Refund Status showed it was direct deposited within two weeks of efiling.  Client accused me of sending it to wrong account because they never received it.   Told them what account they had given me so they could verify with bank.  Yep - money went into their account and was withdrawn by them two days later.   I got an - Oh sorry we forgot.

IRonMaN
Level 15

Didn't Art Linkletter used to have a TV show called "Clients Say the Darndest Things"?

ACME Taxes, Tatoos, Tires and Tomatoes (I had to get rid of the turtles - they kept running away)
dkh
Level 11

Clients - Kids.....same difference sometimes

taxea96786
Level 7

no spouse or ex...this is definately an IRS glitch

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dkh
Level 11

Did your client receive the refund for the 2018 return? Was the 2018 return efiled in 2019 or in 2020?   If it was filed in 2020, possibly the return is tagged for further review or identity verification. And unfortunately due to the close down for the pandemic, IRS is behind on those processes.   

That doesn't explain why your client is receiving notices from several service centers - weird!

View solution in original post

taxea96786
Level 7

see my response to Lisa. Yes, very weird. I don't know what else I can do until we get a response from IRS.

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dkh
Level 11

Once you have determined if and when the client received the 2018 return refund, I'd call the Practitioner Priority Service line.  With the paperwork backlog IRS is dealing with you may be waiting a long time for a response to your letters.

taxea96786
Level 7

Agreed and will try that route. Thanks

taxea96786
Level 7

Got a call from my client this morning.  His refunds were deposited into his bank in the past 24 hours.

No explanation or notice from IRS.  Guess it works to out their errors.

Thank you all for your thoughts.

dkh
Level 11

Thanks for letting us know you're your situation was resolved.   

Although, it would be nice to have an explanation from IRS why all the notices