Multiple CP81 letters

[rtsietsema]

My client recently received two C81 letters from the IRS. One to the wife only and one to both of them. Credits of $323 and $360 respectively. The return was timely filed and the balance due was paid. I have no clue what these letters mean. The letter says to refile, or it gives the option to call and apply the credit to another tax year.

I’ve asked the client to call and try to apply the credits to 2024 and ask for an explanation.

Why two letters and where did the credits come from? Does anyone have experience with this situation?

[Lion]

Did you read the letters? https://www.irs.gov/individuals/unde...our-letter-12c

[New York Enrolled Agent]

My client recently received two C81 letters from the IRS. One to the wife only and one to both of them. Credits of $323 and $360 respectively. The return was timely filed and the balance due was paid. I have no clue what these letters mean. The letter says to refile, or it gives the option to call and apply the credit to another tax year.

I’ve asked the client to call and try to apply the credits to 2024 and ask for an explanation.
?

I presume this involves a 2023 return and you elected third-party authorization on the 1040. This is a processing issue - call PPS and they should be able to help you.

[jmcdtax]

See: https://www.irs.gov/individuals/unde...ur-cp81-notice

Seems the IRS received payment but not the returns and the statute of limitations to claim a refund of your payment or credit (if any) for that tax year is about to expire.

[rtsietsema]

I sorted it out. Client needed to file Forms 5329 for excess Roth IRA contributions. Mailed back in June. Apparently the IRS has now cashed the checks, but not processed the Forms 5329.

The letters (CP81) are deceptive by boldly stating “We haven’t received your tax return.” They have the return filed in 2022, just not a reason for the payments, which were clipped onto the forms they need to process.