Audit, IRS unreachable

[Matyas Sustik]

I got a 566-B audit letter from the IRS. I forget to include state unemployment compensation in 2017 (actually we had a baby and I took unpaid leave and the state of CA paid for 6 weeks under the SDI insurance). I do not recall seeing the 1099 from the state of CA. (CA does not tax the SDI payments.) I managed to get a copy now (which was pretty challenging).

IRS is right. I want to pay my dues of about 2.4k. However, in the letter there is also a line item called "adjustments to prepayment credits - see attached" for $800. The "attached" does not shed light on the matter. It says: "Federal Income Tax Withholding". I have no idea how that makes sense.

The letter has a phone number and an employee ID number. I thought this will be easy, a quick phone call and get it straightened out and pay my dues. Except the IRS is working with reduced staff due to CIVID-19 and they do not take my call. (18668970161) I submitted a written response (registered mail) within 30 days on April 1, asking the above and indicating that please call me back (which their letter encouraged me to do btw if I have questions). I did not get a response either by mail or by phone.

I am thinking to file 1040-X for that year and send in my version without the $800.

I would appreciate any thoughts or suggestions.