Specifically for calendar tax year 2024. Per usual, in our case, payment with Form 4858 extension included an amount equivalent to 2025 Q1 estimated tax payment and 2024 overpayment was applied to 2025.
Looks like we are experiencing the same systemic tax return processing issues that plagued the KC Service Center during COVID onset a few years ago. It may be impacting other service centers as well. Suggest that TurboTax alert customers and Treasury Department, as well as financial news outlets. IRS has the returns; they just haven't processed many of them.
IRS needs to be transparent - provide a reasonable estimate of how many 2024 returns have been received, but not yet processed? Doesn't make sense to punish taxpayers for a politically-driven government shutdown. IRS should delay sending these erroneous CP59 notices until the 2024 IRS processing cycle has been substantially completed by Service Centers.
