Reply from TaxQuotes Inc.Jul 3, 2025
Hi Jason,
Thank you for taking the time to share your feedback. We're sorry to hear that your experience has not met your expectations, and we appreciate the opportunity to address your concerns.
As your Case Manager mentioned, the balances you are receiving from the IRS include penalties and interest that have accrued due to late filing and late payment. While your tax amounts were calculated accurately, the returns were submitted after the original deadlines. Unfortunately, the IRS applies substantial penalties and interest for both late filing and late payment, which can sometimes exceed the actual tax owed.
Regarding your 2021 return, based on your conversation with one of our tax preparers, you chose to spread out your $100,000 early retirement withdrawal over three years. This option required an amendment to your 2021 return, but it helped lower the tax owed across the years. Without this election, your balance for the other years would have been significantly higher.
We understand that you made payments to the IRS before the returns were fully processed. While we appreciate your intention to resolve the balances quickly, we typically recommend waiting until the IRS processes the returns and issues an official notice. This ensures that all penalties and interest have been calculated and helps avoid receiving additional bills.
If you would like help reviewing your most recent IRS notice or need further clarification, we are here to support you. Please feel free to reach out directly, and thank you again for your feedback.