Household employee taxes - IRS isn't giving including our already paid employer taxes in my in "payments I made".

[Anonymous]

We have a household employee (nanny) for the first time in 2019. We use a payroll service to collect and send in our tax obligations on a quarterly basis. It's my understanding that our tax calculation should look like:
A = Taxes we owe as individuals working
B = Taxes we owe for having a household employee
C = A + B = total taxes owed

D = Taxes our employers withheld from our paychecks
E = Taxes we withheld from our nanny's paychecks + employer taxes that we've collected and sent in
F = Total tax payments made

Our refund should equal F - C which is what we filed.

However, IRS came back and adjusted our return to be F - D. So it's saying that our payment we made does NOT include those employer taxes we've sent in. So now it's like we're paying those taxes twice. Do I call the IRS? Anyone have any ideas of how to correct this? Is there something I could have missed in our filing, or a disconnect on the IRS side?

[JohnB5677]

This is something that you will need resolved.  It seems that your payroll service and the IRS are the two Key players, but you are the one stuck in the middle.

• First, get the documents related to the taxes from your payroll service
• Contact your local IRS office Local IRS Offices  and make an appointment.
• Be sure the payroll service is available for a phone call.
• Present your case to the IRS.