A very strange situation

Client has a trust and the 2019 Form 1041 with all the schedules and forms had been electronically filed and accepted by the IRS more than a year ago in May 2020. (Even the 2020 Form 1041 has been e-filed earlier this year and accepted already.)

Yesterday, client received a very strange letter from the IRS. The letter said they cannot process the 2019 Form 1041 of the trust because the tax return does not include a Schedule E and a Form K-1. They asked the taxpayer to send/fax the forms to them. That cannot be true though as I am 100% sure the Schedule E and the K-1 had been included in the original electronically filed tax return already.

What is even more strange is that they said the tax return is not signed. That strongly implied that they have received a paper filed Form 1041 which was not signed. But as I have mentioned, the tax return been electronically filed and accepted more than a year ago.

Does anyone have similar situation before or have an idea what possibly has happened that is causing such a strange situation?

Does anyone have similar situation before

Did you give the client a “taxpayer copy” in paper format?

Yes. And I have also asked if she has given a copy of the tax return to anyone else. She said she has been the only one who keeps the paper copy and she has never mailed a paper copy of the tax return to the IRS.

I have a client who received a CP2000 for a prior year in Jan 2021. I reviewed and realized she had not given me a broker's statement, and indeed, owed the tax. She paid it, or at least said she did. Not long ago she got a letter stating they could not process her amended return for that year as line 1, column B figures were incorrect. She swears she did not submit a 1040X. I asked in case she took the letter to someone else for review. The letter did not mention anything about the CP2000 figures or adjustments. Also does not look like ID theft issues, although you never know.