Math Error Notices

[Lee B]

According to the Taxpayer Advocate Blog:

"Millions of taxpayers have received math error notices adjusting their returns, including the amount of recovery rebate credit (RRC), child tax credit, or other items claimed on their return. As of April 7, 2022, the IRS had issued 9.4 million math error notices of which 8.3 million of these are related to the RRC and the child tax credit."

https://www.taxpayeradvocate.irs.gov/news/nta-blog-math-error-notices-what-you-need-to-know-and-what-the-irs-needs-to-do-to-improve-notices/

I wonder how many Millions of phone calls and letters this will trigger

[Margaret CPA in OH]

Welp, one of my clients got this and sort of freaked out.  My first thought reading that they did not qualify for the EIP3 as their AGI was $158k was that I and ATX made an error.  When I looked at the calculation, however, it was adjusted correctly as their 2020 AGI was $148k.  The IRS letter said that $150k was the limit.  Not true. It's phased out.

The letter also calculated the balance due as of April 15 even though they sent a check in late March, Certified, Return Receipt, so it had not yet posted to their account.  Then insult on top of that was the interest and penalty not actually due. 

I suggested they double check the date of check cashing and either call the number IRS showed or let me.  Haven't heard their decision yet but it made me look a bit bad, I think.  And I hate it when that happens - bad enough when I do make the occasional error.  Well, I have made one or two...

[Catherine]

Why can't they use their time to go look for more kiddie porn perpetrators and shut them down? Why harass our clients who then harass and blame us?  Why? Why? Why?

[Donnarae]

I’ve had 3 of those notices. I checked all of them and the IRS is wrong on every one. I told my clients to wait for the IRS to straighten it out and if it’s still unsettled in a few months, we will contact them. I’ll  check back with them. 
 

Yes, it makes us look bad. It also wastes our time, and time is money. 

[Lee B]

11 minutes ago, Donnarae said:

I’ve had 3 of those notices. I checked all of them and the IRS is wrong on every one. I told my clients to wait for the IRS to straighten it out and if it’s still unsettled in a few months, we will contact them. I’ll  check back with them. 
 

Yes, it makes us look bad. It also wastes our time, and time is money. 

If the IRS says your client owes more money don't wait too long.

[Donnarae]

26 minutes ago, cbslee said:

If the IRS says your client owes more money don't wait too long.

I’ll check back with them when I get home next week. Thanks!