I received a CP11 on May 23 stating I owed $4475 in taxes on our 2021 return which I believe to be an error due to excess socials security tax payments. I am married filing joint, husband is self employed, but I had two jobs and both companies took out a combined $13,329 in social security taxes which is an overage of $4475 since the max withholding for 2021 should be $8620.
Since I could not get through the phone lines, I sent a certified letter to the IRS disputing the error which was received by them on June 2.
My questions are: Given the IRS is backlogged and may not respond for months, what should I do in the interim? If they do not agree and still claim I owe the money, will penalties be incurred between now and the time they respond? Is it better to pay them now so I don't incur additional penalties, but then if I do that and they agree with my dispute claim, will they refund me that money? Or do I just sit and wait for their response?
Thank you in advance!
