Level 5

Claim of Partial Disallowance letter

Forum|Forum|1 year ago
December 2, 2024
1 reply
12 views

IRS sent client 106C letter denying $1800 withholding that is on W-2. Client sent in backup after earlier letter, but it hasn't resolved. I'm not confident that was done correctly as I didn't see any information. Anyway, we have the W-2 and the last paystub that match and according to the letter the next step would be to send in "small dollar case appeal" in writing.

This has taken forever, is there any quicker way at this time? If we send this in, any turnaround time experience out there?

Thanks, Sandy

ProSeries Tax

BobKamman

Level 15

It would be helpful to have some dates and other facts. When was the 106C sent, from where? When and how (fax or mail) was the reply sent? Did this result in a balance due, or just a lower refund?

C

ColmattAuthor

Level 5

Sorry.

106C received in mail 11-15-24 from Fresno office.

We've been communicating back and forth with IRS since June.

It just reduced the refund by the $1800.

Return was filed in March.

We did not send reply to this yet and they did not offer fax as choice, just letter of small dollar case appeal in writing.

thanks

BobKamman

Level 15

The Taxpayer Advocate has a page explaining this letter, which states: "The letter should explain why they disallowed part of the claim." Does it?

The issue is $1,800 withholding on a W-2? Is there anything unusual about the W-2? Handwritten? Withholding is a large percentage of the total wages?

The TA page indicates you should explain why you disagree, while asking that if your explanation is not accepted they forward the case to Appeals. You have two years to resolve the problem, without going to court.

https://www.taxpayeradvocate.irs.gov/notices/letter-106-c/

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