In mid-June I received mail from the IRS. That’s not unusual; I receive a lot of mail from the IRS (generally, correspondence for clients). But this was different: it was a check for $1.87. Here’s the check:
Now, I wasn’t expecting a refund (I owed tax, which I paid with the filing). It’s definitely labeled as a tax refund, but no explanation accompanied the check. That’s not unusual; the checks and the notice of explanations are generally sent from different offices. I ran a transcript, and there’s nothing noted on my account for 2023 that gives an explanation (no entry for $1.87). So I waited, figuring that I would receive a notice in the mail within a few weeks.
It’s now August 1st, and I still haven’t received anything. I could call the IRS up and they may see something that I don’t in my account. But it’s $1.87, and it’s just not worth my time figuring this out. Yes, there’s a possibility this refund is erroneous (indeed, I suspect that’s the case) but it’s just $1.87! Yes, we tell clients to not cash refund checks they’re not expecting–indeed, if this was $187 (rather than $1.87) I would be on the phone to the IRS to figure out what’s going on. Yes, if this refund is erroneous I may have to pay it back with interest (so that might be $1.97 in three years).
The IRS is supposed to send a notice and perhaps I’ll get one before year-end. I’m not holding my breath.
This is more humorous than anything else (because it’s $1.87), but it’s typical of the kind of issues we see. I’m currently having to appeal an erroneous late filing penalty for a client who filed his tax return on December 15th (his tax deadline) because the mailing receipt from Australia shows the date as “15/12.” (In most of the world–but not the United States–the day appears before the month.) In my letter asking for the appeal, I really wanted to say, “Does anyone consider there aren’t fifteen months anywhere in the world?” I didn’t–I kept the letter directly on point including the citation to § 7502(a)(1) of the Internal Revenue Code (which governs timely filings).
These are two examples of the IRS’s major issues with correspondence. Unfortunately, I haven’t seen any improvements this year (only regression).