Fred Kimball of Raymond, now retired, was a management consultant for 30-plus years with clients around the world. His specialties were driving operational improvement in processes, logistics, customer service, systems, asset utilization, finance, HR and automation.

Does anyone really like the IRS? Most of us accept that the IRS is needed even if it is a necessary evil. We also need to trust that it is independent and fair to all. About its operational effectiveness and efficiency, however, there is a long road to improvement.

In December 2024, the IRS announced it discovered an error in the 2021 tax returns of about 1 million taxpayers. The announcement stated the taxpayers did not claim credit for the 2021 Recovery Rebate, and the IRS would be refunding $1,400 to the payers. The payments would be by direct deposit or mail depending on how the person filed their return. The total returned was $2.4 billion.

The IRS deposited the $1,400 to my bank on Dec. 26, 2024. The letter from the IRS explained the refund was “… to correct your Recovery Rebate Credit.” My 2021 tax return was prepared by my CPA and approved by me before filing. I did not think there was an error, but if the IRS says so for 1 million people, OK, it must know better. I paid off a loan.

In July, I received a letter from the IRS announcing a “processing error,” and I should not have received the $1,400. The letter requested me to return it. I found some Reddit posts where others had received the same letter, but I have not found anything about the IRS acknowledging its mistake.

I have not seen anything in the news about the mistake or correcting it. This is concerning; up to 1 million people may be in the same boat to the tune of $2.4 billion. I spent time researching if the letter is a scam. I think not.

The July letter confirms the direct deposit to my bank account last Dec. 26. The very next sentence says “If you still have the check, return it…” How would I still have the check if it was a direct deposit? The next sentence says, “If you cashed the check …” Ditto, how could I have cashed a check for a direct deposit?

The instructions provided a long list of data required on the front of my payment check. Suffice it to note that personal checks are not large enough.

The letter had no address for sending the payment, no deadline, no mention of any penalties and interest. So much for the “Who, What, When, Where, Why and How” we learned in elementary school. Can I take as long as I want and even make zero-interest, time payments?

The envelope enclosed for mailing the payment was a window envelope, but it is not usable because there is no address and no payment coupon that would be in the window. Did DOGE find this under “waste” and leave it there?

My CPA has since retired. I engaged a Portland CPA firm for help, at my cost. They were very responsive with a limited scope to save time and money. They concluded my original 2021 return was correct, and I should not have received the $1,400. They could not find anything on the IRS website or with other sources in the accounting world that the IRS is requesting return of the money. Yet, 1 million taxpayers nationwide got the refund last December. Am I the only one the IRS is asking to return it?

It made me wonder if current events are playing a part. I live in Maine, a state the administration loves to hate. DOGE people had access to IRS files, allowing them to target people in a hated state. My skepticism breeds distrust.

According to reports, the IRS workforce was reduced by 25,000 employees between January and May of this year, a 25% reduction in its staff.

So much for an IRS that is effective, never mind efficient. I did not ask for the money. My tax return was correct as filed. If someone sends us money they do not owe us, it must be a gift, right?
How will I pay back the mistaken refund? The refund money is gone, and I will have to use retirement funds.

Using retirement funds is a taxable event for both federal and state, about 20% combined, or $280. So, to have the $1,400 to pay the IRS, I must withdraw $1,680 from retirement money. In other words, I am paying for the IRS’ mistake. The IRS has not been transparent about its error. Trust takes more hits.

I sent a letter with questions to the IRS using USPS tracking. The IRS has had the letter for seven weeks. I just got a reply asking for another 60 days for them to respond. So much for the “Service” in their name.

The administration’s cuts were with a bomb, not a scalpel. Sure, there are opportunities for reducing costs while increasing effectiveness. But it takes time, and if things are as bad as my experience indicates, it will take a lot of time and a detailed, long-term plan for improvement.

The remaining employees must be hurting by what has been done to their co-workers. I feel for those cut and those still there. Trust is easy to lose and very hard to win back.