PPG Partners Contacted Representatives Regarding IRS Issues
In recent years, we have experienced a significant problem revolving the IRS's inability to move or apply tax payments to the proper tax periods. Many of our clients have had substantial overpayments from prior tax years that were intended to be rolled forward and applied to future tax liabilities. However, the IRS has been issuing notices indicating that these overpayments were not correctly applied, leading to erroneous assessments of tax, penalties, and interest for the subsequent periods. This has caused unnecessary stress and financial burden on our clients, who were under the reasonable expectation that their tax payments had been appropriately allocated. In some cases, we were informed that the IRS is behind in processing amended returns, which has resulted in tax overpayments not being applied to future periods as requested.
Our firm has contacted the IRS multiple times to resolve these issues. Unfortunately, each time we were informed by IRS agents that their system is down, and they do not know when it will be back up. This lack of transparency and reliability is deeply concerning, as it leaves taxpayers in a state of uncertainty and potentially facing unjust penalties. This issue not only undermines the trust and confidence taxpayers have in the IRS but also creates significant administrative challenges for tax professionals like us who are trying to ensure that our clients comply with their tax obligations accurately.
When we see recurring issues with the IRS that cause grief for our clients, and a solution seems out of our control, we will reach out to our state representatives. In late August we reached out to a few of our Wisconsin politicians regarding these issues with the IRS Credit Transfer Tool, and received the response below from Senator Ron Johnson's office. We wanted to share this with you, as we know many of you have been affected.
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After reviewing your concerns regarding the credit transfer tool at the IRS, I want to confirm we are aware of this issue and it is causing issues with congressional inquiries as well. So since about April I have been following up on this and trying to pressure the agency to provide more information. To date, there have been no solid answers or timelines provided. In June a workaround was established for certain kinds of transfers however the issue itself is unresolved. Right now, transfers between different accounts or from business to personal accounts are not possible. I agree this is unacceptable and does cause real harm in some cases where balance dues have occurred in error. So I have been doing my best to highlight the issue on behalf of the Senator’s office to try and have the agency provide at minimum real information on the topic.
That said, if you like, I am happy to update you if I obtain anything going forward. If you have any questions or information to pass forward, please feel free to share that also with me.
Thank you again for flagging this matter.
Kindly,
Joe Nagel
Constituent Services Representative and Scheduling & Communications Assistant
