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Returning Member

No Unemployment Tax Relief

Filed my dependent daughter's 2020 federal taxes prior to the rules change with unemployment tax relief.  She owed about $1,200.  After the tax relief was passed I reran her return and it showed a refund due of $800.  Everything I read said not to file an amended return and that the IRS would recalculate those impacted.  Never received the refund and now received a letter from the IRS saying she never paid the $1200 and there are now interest and penalties due.  Should I file an amended return?  Who should I talk to to straighten this out?  Any guidance in appreciated. 

3 Replies
Level 15

No Unemployment Tax Relief

We are starting to see a lot of questions like yours.   Since you prepared your tax return and filed before the tax law changed for the tax on unemployment, you owed tax due and then learned you should not owe so much or might even get a refund---so you did not pay your tax due by the May 17 deadline.   Now the IRS computers are churning out notices to people who did not pay their tax due.


Eventually---sometime during the summer--- the IRS will recalculate the amounts of tax due or refunds for people whose returns were filed before the law changed----but it may take a few more months.



So if you are sure she  will NOT owe when the changes are made then you can either ignore the notice  OR  call/write back and alert them to this situation.  Just don't worry as it will all come out in the wash in the end.

Returning Member

No Unemployment Tax Relief

Tired calling but recording says call volumes are high and it disconnects me.  What address can I write them at and explain the situation?



Level 15

No Unemployment Tax Relief

There should be an address on the notice ... use it. 

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