3 Things to Consider When Facing an IRS Mistake

We’ve heard a lot about IRS mistakes over the years. Everyone likes to complain about taxes and audits. But the complaints have increased over the last few years as more and more people are affected by slow IRS processing times and frustrating mistakes. While the IRS processing and response times weren’t great before 2022, the agency faces a significant backlog since the global pandemic brought much of the country to a standstill in 2020. Early in 2021, the IRS had a backlog of 24 million tax returns. With a hiring spree for 10,000 workers, the IRS decreased the backlog significantly, but not enough. By the end of 2022, the IRS still had 12.4 million tax returns waiting for processing. With the emphasis on ending the backlog, mistakes are bound to happen.

Is Fixing Mistakes Possible?

If you made a mistake on your return, or if the IRS adjusted your return and you disagree with the changes, you can file an amended return. If the IRS makes a mistake on an audit, you may be able to appeal the decision with the IRS before they send you a notice of deficiency. Once the IRS sends a notice of deficiency, you have 90 days from the date of the notice to file a petition with the U.S. Tax Court. If you miss the deadline, you can still appeal the decision, but you must first pay the full amount and then file a refund claim. You may also be able to contact the Taxpayer Advocate Service to see if they can help resolve your issue.

What Should You Do?

If you believe the IRS made a mistake in amending your return, an audit, or assessing penalties and fines, getting someone at the IRS to answer your questions can be frustrating. If the agency answers your call, you can spend hours on hold to speak to someone. Moreover, the IRS also takes months to respond to written correspondence, and a written response still may not fix the problem. If you’re experiencing issues with IRS errors concerning your taxes, it’s time to get an experienced tax professional involved. Contact Highland Tax Group to see how we can help.