Most business owners think IRS overpayments are safe. That if the government owes you money, you’ll either get it automatically or be contacted in time.

That assumption can cost you thousands.

Recently, one of our clients had a $17,000 overpayment sitting on their IRS 941 payroll account—left behind by a prior payroll company before they were terminated. The IRS sent multiple notices about the balance, but none were received or acted upon. By the time the final warning arrived, it said:

Claim this credit or the IRS will apply it elsewhere or take it entirely.

The client never saw the earlier letters. But because Polaris Tax & Accounting monitors transcripts and directly communicates with the IRS on our clients’ behalf, we stepped in. We contacted the IRS, filed the proper refund claim, and had the full $17,000 refunded. Learn more about our  IRS Monitoring Services

Here’s the scary part: Most businesses would have lost that money.

Under IRS rules, overpayments on payroll taxes (like Form 941) must be claimed within three years of the date the return was filed or two years from the date the tax was paid—whichever is later. After that, the IRS can legally seize the overpayment.

This isn’t just about this one case. It’s about how easy it is to:

  • Miss a credit sitting in your IRS account
  • Lose refund rights due to a simple deadline lapse
  • Get no alert unless you’re watching IRS transcripts closely

The Real Fix: Proactive IRS Monitoring

Polaris Tax & Accounting routinely pulls and reviews IRS business account transcripts for clients to:

  • Identify unclaimed credits or overpayments
  • Catch missing 941 deposits
  • Monitor notice activity and deadlines

This client didn’t need a new payroll provider. They needed an advisor who actually watches their IRS back.

How You Can Protect Your Business

Whether you use a big payroll company, a boutique firm, or handle it in-house, here’s what you need to do:

  • ✅ Review 941 transcripts annually (we can help you pull and read them)
  • ✅ Reconcile IRS payments to your books every quarter
  • ✅ Respond to IRS letters quickly—don’t assume they’ll follow up
  • ✅ File refund claims before the 3-year window closes

Serving Businesses in Plantation, FL and Beyond

Based in Plantation, FL, Polaris Tax & Accounting supports business clients across the U.S. who want more than just basic tax prep. We provide:

  • IRS notice support
  • Refund and credit recovery
  • Payroll compliance reviews
  • Strategic tax and accounting guidance

Final Word

If you’ve had staffing changes, changed payroll providers, or just haven’t looked at your IRS business account in years, don’t wait. Your money might be sitting there—but not for long.

📞 Call 954-423-3577
🌐 https://polaristaxandaccounting.com/services/irs-tax-problems/