N400 IRS Transcripts question

[ebhopeful 0]

Hello everybody,

 

My SO and I are planning to file under the 5 year general provision. We were looking through our IRS transcripts and for a particular tax year we noticed that the transcript shows 0 for balance and penalties but has a $0.17 of accrued interest. We called the IRS and they are puzzled and do not see any balance on the account. Two separate agents reassured us that we don't owe any money to them despite what the transcript says. So, what do we do here? Is this going to be an issue? I would love to pay off any balance but according to the agents there is none to be paid off. All other years say 0 for balance, interest and penalties.

 

TIA!

[EatBulaga 446]

On 3/28/2025 at 7:47 PM, ebhopeful said:

Hello everybody,

 

My SO and I are planning to file under the 5 year general provision. We were looking through our IRS transcripts and for a particular tax year we noticed that the transcript shows 0 for balance and penalties but has a $0.17 of accrued interest. We called the IRS and they are puzzled and do not see any balance on the account. Two separate agents reassured us that we don't owe any money to them despite what the transcript says. So, what do we do here? Is this going to be an issue? I would love to pay off any balance but according to the agents there is none to be paid off. All other years say 0 for balance, interest and penalties.

 

TIA!

You could send in a small estimated tax payment, like 10, with the form 1040-ES.

Keep the small positive balance with the IRS for a few years.

In other words, when you file for the tax return leave 10 for next year's taxes.

You lose at most a few years of interests on 10, which is a small price to pay to insure you don't owe any penalized tax or accrued interest with the IRS.