I received these forms for tax year 2023.
Form 4549 proposes an increase in tax, and includes interest calculated from 4/15/2023 to 12/01/2024.
Form 886-A says it is the IRS fault, no interest: "Since the erroneous overpayment was due to IRS error, no interest will be charged if you pay the amount refunded in error within 21 days of the date of this letter"
I agree with the extra tax but do not agree with paying interest.
What should I do? I am worried that if I sign 4549 it'll mean I agree to paying interest. Instead, I'm thinking of doing the following:
- do not sign 4549 (which means I do not agree with the total Amount Due)
- enclose a check for the tax increase, without interest
- enclose copy of 886-A
- write explanation in Comments section of Form 14817 (Reply Cover Sheet)
Any advice / thoughts / suggestions?