Taxpayers across Nebraska and Iowa are often surprised when the IRS sends a letter claiming they owe more than what they filed. Many assume it’s a government mistake, but in reality, these letters almost always come from data mismatches or automated adjustments the IRS makes behind the scenes.
1. Income the IRS Received That You Might Have Missed
Agricultural side income, gig work, contractor payments, and 1099-K forms from payment apps are reported directly to the IRS. If any of these weren’t included in your return, the IRS recalculates your tax for you.
2. Midyear Job Changes and Withholding Issues
Workers in Omaha, Des Moines, and surrounding metro areas often have multiple jobs throughout the year. If withholding wasn’t set correctly, the IRS adjusts your return upward.
3. IRS Corrections When Credits Are Calculated Wrong
The IRS frequently changes returns involving:
- Child Tax Credit
- Earned Income Tax Credit
- Premium Tax Credit
A small calculation error can lead to a large balance due.
4. Self-Employment Income and Underpaid Estimates
Many BPB clients are self-employed. Missing quarterly estimates or underreporting income can cause immediate reassessments.
5. Old Returns or Missing Returns
If the IRS believes you skipped a filing year, they can create a return for you (called an SFR) that excludes all deductions — leading to a much higher bill.
Need Help?
BPB can challenge the IRS’s math, overturn incorrect assessments, or negotiate a plan that protects your income and assets. If you received a notice, act early — the IRS moves quickly once a balance is established.
