Tax Year 2025 Form 5695 Nightmare Continues

Sorry, this is a bit long, but I am running out of ideas and would appreciate any help I can get.  Here is what is happening:

• 12 Feb 2026
  • Submitted taxes via TurboTax
  • Married Filing Joint
  • 1040 SR
  • Very simple return
    • Interest Income
    • Social Security Income
    • Pension Income
    • IRA Income
    • Energy Efficient Home Improvement Credit using the infamous I7Q6 QMID

• 13 Feb 2026
  • Notified by TurboTax that my Federal return was accepted

• 19 March 2026
  • Received refund via direct deposit adjusted by the IRS minus $2000 credit with no explanation as to why
  • Called the IRS at [phone number removed]
  • IRS rep researched this issue and, after about 2 hours, agreed the $2K reduction was an error on their part
  • I was asked to write a letter explaining the situation and asking for the $2k refund
  • I requested a face-to-face meeting to review the letter – scheduled for 13 Apr.

• 30 March 2026
  • Received IRS Notice CP12 with the following explanation
  • We adjusted the Energy Efficient Home Improvement Credit you claimed on Form 5695, Residential Energy Credits. You either calculated the credit incorrectly or indicated you were ineligible for a credit.
  • Nothing really useful there to say "why".

• 13 April 2026
  • 8:00 AM meeting with the IRS at their Modesto office
  • IRS Agent reviewed my account and the letter, along with all of my supporting evidence
  • He agreed the IRS had made an error and tried for almost 2 hours to fix it in the system
  • The IRS Agent involved his supervisor, and neither of them could fix the error
  • I was told to submit the letter and let the IRS fix the problem.
  • I submitted the letter

• 18 May 2026
  • Received a Letter from the IRS indicating they were working on my claim and need an additional 60 days to complete

• 23 May 2026
  • Received a letter from the IRS indicating the following:
  • We have disallowed the amount claimed as First-Time Homebuyer Credit on page 2 of your tax return.  To be eligible to claim the credit, the purchase prices of the residence cannot exceed the $800,000 limit.  We also disallowed the Energy Efficient Home Improvement credit.
  • I did not claim a first-time home buyer credit.  There is nothing on page 2 of my tax return referring to this.  I am eligible for the energy-efficient home improvement credit.

Note: During this time window, I called the IRS several times to check on the status.  Nothing meaningful came from those phone calls.

So my question is, does anyone know how to escalate an issue with the IRS and actually talk to someone who can get something done?

Thanks,

Barry