Hi guys,
I need your help! So I filed the federal tax return with TurboTax for 2021 tax year on 4/10. For some odd reason I was not prompted by TurboTax to pay tax due with the e-filing.
Based on the turbo tax payment instructions I later printed out, they wanted me to mail a check to IRS. But instead of mailing a check I went online and paid the tax due fully on 4/12 by bank draft and the payment was successfully processed.
However, today, after months of processing, my IRS online account is showing a balance due, which is a sum of the original tax due (per turbo tax 1040 return )+ penalty and interest!
I then downloaded the account transcript and realized the full payment I made on 4/12 was not reflected in the account activities at all. How can they post a balance without calculating my payment first and not only that, also charged me interest and penalty? The payment was made 2 months ago and they clearly have received.
The IRS account online has a separate payment activity page,and my payment is being listed there. It seems that my payment was not been reconciled with the tax due or something like that? It’s like they took my payment but did not apply it to my taxes. Is that a miss on the IRS? What should I do?
There is nothing you need to do with this time. Eventually the IRS records will catch up with reality and your payment will be reconciled with your return. Right now the IRS is busy completing returns with refunds on them so returns with balance dues are on the very back burner like they have been the past couple of years. So all you can do is just wait and be patient. If for an odd reason you do get a balance two letter simply respond with proof of payment and that should be the end of the story.
So I did get a notification today via online notification.
They are asking me to pay the balance due. I tried to call them this morning but it’s impossible to talk to a real person today. They said due to “extremely high call volume” they were not able to take my call and I was asked to call next day. This is so frustrating. In their letter they stated if you don’t contact us we assume you agree with this letter. But they make it so hard to talk to them about fixing their errors. Is there another way to reach IRS? Can I email them?
Thanks!