by I. David Waxman
Introduction
Dealing with the IRS isn’t anyone’s idea of fun. But mistakes happen, and when they do, you need a roadmap to get them corrected. Below are common issues taxpayers run into, followed by practical steps to resolve them.
1. Common IRS Problems
- Erroneous tax assessment – The IRS incorrectly assesses additional tax you don’t owe.
- Missing refund checks. The IRS sent the refund, but you didn’t receive it (also see IRS form 3911).
- Misapplied tax payments
- Posted to the wrong tax year
- Posted under the wrong taxpayer (for example, the “spouse” on a joint return pays under their own SSN, and the IRS refuses to apply it to the joint balance).
- Penalty relief requests – If you missed a filing or payment deadline, you may qualify for a first-time penalty abatement if you’ve been compliant for the prior three years.
- Data entry errors – Wrong SSN, filing status, or other clerical mistakes.
- Disaster relief claims – Special rules extend deadlines if you’re in an area covered by IRS Notices (e.g., for residents of Israel seeking war relief, see IRS notices 2023-71, 2024-72).
- State tax issues – Sometimes it’s not the IRS but your state. Example: you list a New York address on your Form 1040 while living abroad, and New York issues a bill. The IRS shares data with the states, so you may need to call the state revenue department directly.
2. How to Fix the Problem
Step 1: Review Your IRS Records
Get your account transcripts from IRS.gov. (See our guide on registering—spoiler: it’s not simple.) Review wage & income, account, and tax return transcripts carefully for discrepancies.
Step 2: Establish a Written Record
Send a written explanation to the IRS.
- This won’t guarantee resolution, but it documents your good faith effort.
- You can use AI tools (ChatGPT, Claude, Copilot, Gemini, etc.) to draft, but always review and edit for accuracy.
- Mail the letter to the address on your notice, or fax it to +1 681-247-3101 (international fax). Include a copy of the notice.
- Keep a copy – this is important for establishing that you are doing your due diligence to resolve the conflict through normal channels before escalating.
Step 3: Call the IRS
- For international taxpayers: +1 267-941-1000 (6AM–11PM ET).
- Call at opening time for the shortest waits.
- Expect to spend 1–2 hours. This is for the wait time, verification process, and time on hold while they review your records.
- 💡 Pro Tip for Sanity Put your phone on speaker — but set the volume just high enough that you’ll hear when a live person finally answers. The IRS hold muzak and repetitive messages are mind numbing; too much exposure can drive even the calmest taxpayer to the edge.
- Have your return and ID info handy (SSN, DOB, address). If you miss a question, they won’t help you.
- Be polite, explain the issue clearly, and hope for a sympathetic rep. Some fix problems immediately; others don’t.
- Afterward, write up your notes and send a summary to the IRS by mail/fax for your records. See notes above on Step 2.
- 💡 Extra tip: Hope for the best, but be prepared for the worst—whether dealing with the IRS or life in general. Occasionally, you’ll reach a representative who listens with empathy and genuinely tries to help. Others may respond with indifference, showing little concern for your issue or the time you spent waiting. Most fall somewhere in between. Do the best you can with whoever you’re dealing with.
Step 4: Wait and Recheck
While IRS representatives often estimate 30 days for corrections, allow 60-90 days for processing before following up. Then check your transcripts again. If the correction shows up—victory! If not, got back to step #3 and repeat the process. Give it another 60 days, and the it is time to escalate.
Step 5: Escalate to the Taxpayer Advocate Service (TAS)
- File Form 911 by mail or fax.
- If your case is accepted, TAS will request supporting documents (often ones you already gave the IRS). Provide them promptly.
- TAS is swamped, so getting an advocate assigned is a big win.
Step 6: Contact Your Senator or Representative
If TAS doesn’t help, reach out to the last state where you lived. Congressional offices only assist constituents. Visit their website and look for the IRS casework request section.
Other: Respond to a Statutory Notice of Deficiency
This is the IRS formally saying you owe more tax. You can:
- File a petition in Tax Court (even without a lawyer, “pro se”). Court fee is $60.
- IMPORTANT: The deadline is 90 days from the date of the assessment if you live in the USA. If you live outside the USA (like most of our clients), then the window is 150 days. The tax court has zero flexibility. If you miss this deadline, then this door closes permanently.
- The IRS will transfer the case to Appeals, where you can negotiate.
- If Appeals fails, work directly with IRS Counsel.
- If that fails, a Tax Court judge decides. (Most cases settle before then.)
- Tip: You can engage a CPA or Enrolled Agent to represent you after you file the petition.
Other: File an Amended Return (Form 1040X)
- Amended returns require a formal IRS response, unlike letters or phone calls.
- This is another option that could be implemented at any point.
- Processing can take up to two years.
Getting Ahead of the Curve
When the IRS makes an error, the path to resolution is often uneven. Most taxpayers never push back, which means the Service rarely corrects mistakes unless pressured. By leveraging the right resources, you can move your case forward faster than most people do.
The reality is that with each escalation step, fewer taxpayers follow through:
| Level of Response | Description | Latest Available Data (FY2024) |
|---|---|---|
| Do Nothing | Accept the IRS notice as-is, even if incorrect. | No direct data, but surveys show most taxpayers never contest errors |
| Contact the IRS Directly | Call and/or write to request correction; often slow or frustrating. | ~20 million live calls answered; >2 million in-person TAC visits |
| Taxpayer Advocate Service | Independent office inside the IRS that helps with unresolved or systemic errors. | 256,737 TAS cases opened |
| Congressional Intervention | Ask a member of Congress to open a case, usually routed through TAS. | 47,367 congressional referrals to TAS |
Takeaway: If you’re proactive and willing to escalate when necessary, you stand out from the majority who simply give up. That persistence can make the difference between years of waiting and a timely correction.
Final Thoughts
IRS conflict resolution is a marathon, not a sprint. Start by gathering your records, documenting every step, and escalating strategically. With persistence—and sometimes a little help from an advocate, attorney, or member of Congress—you can usually reach a resolution.
Disclaimer: This article is for educational purposes only and does not constitute legal, accounting, or tax advice. Every taxpayer’s situation is unique. The article could include errors and/or outdated information. You should consult a qualified tax professional before taking any action based on the information provided.
Last updated: September 10, 2025. IRS rules change; verify on IRS.gov.