My mother's 2019 federal return was efiled in the summer of 2020 showing $24,700 of the $34,705 overpayment to be refunded (line 21a) and $10,000 of the overpayment to be applied to 2020 estimated taxes (line 22). A refund in the amount of $24,700 (plus $347.94 interest) was direct deposited to her savings account in August, 2020. She died on 5/28/2020 and I efiled her final income tax return for 2020 on April 2, 2021. The return was accepted on 4/3/2021. Line 26 of her 2020 return shows $10,000 applied from 2019. On 4/28/2021 I received a CP23 notice from the IRS showing a $5,094 balance due because they did not give credit for the $10,000 overpayment from 2019.
I have spent in excess of 3 hours on the phone with the IRS and their only comment is that they have no record of her 2019 return being processed. They have no explanation of why I would have received a refund plus interest if the return hadn't been processed. Please tell me the best way to resolve this issue.
Pamela Meyer, Trustee
