IRS Slow respone

Technical topics regarding tax preparation.
#1
Posts:
31
Joined:
6-Jun-2014 1:50pm
Location:
California
Client filed his 2017 tax return very late in Feb 2020. He did it himself and made a large error resulting in him owing a balance of ~17,000. Client requested we review his return and his error were discovered. An amendment was filed in June 2020 and the resulting balance owed on his amended return was ~$200.

His transcript for tax year 2017 shows the following entries regarding his amendment:

971 Amended tax return or claim 07-24-2020 $0.00
forwarded for processing
977 Amended return filed 07-24-2020 $0.00
33277-517-07789-1
977 Amended return filed 07-24-2020 $0.00
28277-531-04967-1

971 Tax period blocked from automated 11-23-2020 $0.00
levy program

The IRS is not able to answer the reason for this delay on their customer service line, and has instructed the tax payer to be patient and wait for resolution. They are not currectly trying to collect, but the transcript still shows a balance due of about $25k.

He is now in process of trying to secure a mortgage and wants this to be cleared. IRS has had this for almost 2.5 years now. How can he speed this up, and/or demand resolution?
 

#2
cotopop  
Posts:
48
Joined:
23-Apr-2014 11:30pm
Location:
Orange County ,Ca
Generally the mortgage company requests no more than the last two years of tax returns which in your case is 2020 and 2021 . I don't think the 2017 tax year comes into play for your client to pursue a loan even though an amended return for tax year 2017 was filed in 2020 .
 


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