We Think the IRS has a Glitch
Many taxpayers are getting notices about direct deposit, etc. that makes no sense
We have seen several instances of the IRS sending notices to taxpayers regarding direct deposit.
Some of the notices will indicate the IRS was unable to direct deposit the 2025 tax refund. However, when we review the tax return, we find out that all of the refund was credited to 2026 estimated tax payments, therefore, there is no refund to be deposited.
In other instances, taxpayers have received the same notice, but in fact, the taxpayers actually owed tax which was taken correctly out of the account.
We believe that the efforts by the IRS to require taxpayers to no longer use checks to pay taxes or ask for a refund by check has messed up their computer systems.
We are not the only ones seeing these notices. Other CPAs have reached to us to let us know. We will provide a poll here to see if any of our readers have received the same notices.
a couple of my clients the IRS said received the letter as the IRS waived the Estimated Tax penalty and want to refund it. Even though the taxes were taken out of their bank account through the tax return they aren't able to use that to deposit back which to me doesn't make any sense.
Same situation with IRS waiving estimated tax penalty for farmers for returns filed in March before the notification came out. We have seen a few actual paper checks starting to show up just this week!