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I  received a notice in the mail today from the IRS explaining the $452 refund I have already received for overpaying too much for interest income (because my interest income from one financial institution was duplicated, essentially doubling the tax owed).

This explanation notice from the IRS had a phone number to call if I had any questions - so I called it to inquire about the $661 refund I want to be paid once the IRS adjusts my 1040 tax return due to me not using $3,000 of my available Capital Loss Carryover.  I asked for this to be corrected/adjusted in my 1040X amended tax return.

I also wanted to use the phone call to find out why I was not refunded the $661 at the same time I was refunded the $452. It seems just one check totaling the $1,113 I want to be paid would have been easy to do.

When I called the phone number on the notice I was politely asked to leave my phone number and  was told I'd get a return call for Area Code 304 (West Virginia) in 37 minutes, which I did. The IRS agent that called gave me his name and IRS Badge number (he was actually on the west coast in California but the 304 area code is commonplace for some reason) - however the IRS agent told me he handles 'collections' so he kindly forwarded me to another IRS department agent (who also gave me his name and IRS badge number) that handles income related 'refunds'. Everything was very professional an efficient. The agents were very pleasant and displayed experience and expressed a true desire to understand and provide help.  This first twenty minutes with the 'refund' department' IRS agent was spent with the agent reviewing both my original 1040 tax return and my amended 1040X tax return which required him to put me on hold for about 5 minutes 2-3 separate times. When he understood that I was inquiring about the $661 to adjust my Capital Loss omission on my 2023 1040 he added some precise information we discussed to my file about me not getting a $661 refund for the Capital Loss issue when I as refunded the $452 overpayment for interest income. He convinced me he totally understood my inquiry and said anyone looking at my file would now see the information he added and would thoroughly understand it as well. He told me another department actually handles Capital  Loss issues and he sent my information to that department. He was very good and totally understood everything and explained to me that a refund might be taken care of (i.e. refunded) without any further involvement from me, however he suggested that I should send the U.S. Treasury IRS in Austin, Texas a letter outlining the issue.  I decided that was good advice. I hope it helps the IRS refund my $661 a little quicker - - then they can mark my Amended tax return 'completed'! 

Below is my letter I mailed to U.S. Treasury- IRS in Austin, Texas:          

May 7, 2024

Reference: Tax Year 2023
Amended 1040X Tax Return
Social Security# xxx-xx-xxxx

I filed an amended 1040X tax return for tax year 2023 to correct two mistakes on my original 2023 Federal tax return which resulted in a total of $1,113 to be refunded to me. One mistake correction was for paying taxes on too much interest income for which I have already been refunded the correct amount of $452 which I received by check.

I have not received a refund for the other correction, which is explained below:

When I was doing my 2023 Federal tax return using TurboTax I apparently made a mistake and incorrectly selected ‘No’ when asked if I wanted to use $3,000 of my remaining Capital Loss Carryover. My 1040X was sent to amend this Capital Loss Carryover omission along with adjusting the interest income correction.

By not using the $3,000 maximum Capital Loss Carryover on my 2023 Federal tax return, this resulted in me paying $661 too much in Federal tax - which is the reason for my amended 1040X tax return. I expect to receive a refund of $661 for the adjustment to correct this.

At the time I was working on my 2023 Federal tax return I had $233,898 Capital Loss carryforward for tax year 2023 after filing my 2022 taxes.

As explained, by mistake no Capital Loss Carryover was used on my 2023 Federal tax return which I want corrected/adjusted per my 2023 1040X amended tax return.

The following is my Capital Loss Carryover amounts for the past few years:

2020: $242,910 ($239,898 carryforward amount for 2021)
2021: $239,898 ($236,898 carryforward amount for 2022)
2022: $236,898 ($233,898 carryforward amount for 2023)
2023: $233,898 (After adjustment of my 2023 Form 1040-SR tax return per my 1040X amended tax return and the IRS refunding me $661, there will be $230,893 remaining Capitol Loss carryforward amount for tax year 2024)

IRS, please forward to me a refund check in the amount of $661 to adjust my 2023 Form 1040-SR.

Best regards,

xxxxx xxxxx