2 of my clients have received notices from the Kansas City office assessing 2017 tax when there was an overpayment. The difference is the application of the 2016 overpayment to 2017. They have not recognized that overpayment. Clients have not received any notices adjusting the 2016 overpayment. I have a very small practice, so the fact that the IRS has ignored the overpayment for 2 of my clients is not insignificant.
The first notice arrived in April, and that client is further along in the process. When responding, we obtained transcripts for 2015, 2016, and 2017. There were no discrepancies with the returns that I filed. I sent a letter, with the transcripts, and asked the IRS to either correct the account or explain why they are ignoring the 2016 overpayment.
Yesterday, I received the IRS's response. They said that they were enclosing the 2015 - 2017 transcripts and that we should find the discrepancy! They said that the client should have received notices adjusting the accounts.
Suggestions? I am thinking about sending one more letter, notifying them that I will be contacting taxpayer advocate if they won't provide the support for their adjustment.