Refund was amended and an Audit is coming

Forum|Forum|4 years ago
October 15, 2021
3 replies
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So I got half the refund that was on my initial tax return. I got a letter stating they redid my taxes on the grounds that my dependents social were wrong and I made over $75k—I don’t have any dependents and I was on unemployment for COVID most of the year. I made like $25/k. I paid for the plus turbo tax with 110% guarantee and audit protection. What’s my recourse with turbo tax?

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DoninGA

Level 15

The letter from the IRS probably is stating that you indicated on our 2020 federal tax return that you did NOT receive a stimulus payment and therefor the amount that you did not receive was entered on the Form 1040 Line 30 as a Recovery Rebate Credit.

However, the IRS removed the credit from your tax return because the IRS shows that the stimulus payment was sent to you. By removing the credit this reduces your federal tax refund or increases the taxes owed.

Go to the IRS website for your tax account to see what the IRS has sent to you for stimulus payments - https://www.irs.gov/payments/view-your-tax-account

If you never received the stimulus payment shown on your account then have the IRS put a trace on the payment. Go to this IRS website for how to start a trace - https://www.irs.gov/newsroom/questions-and-answers-about-the-first-economic-impact-payment-topic-f-p...

xmasbaby0

Level 15

You received the generic IRS letter that listed possible reasons for a change in your refund.

TurboTax has no way to know whether you received the 1st and/or 2nd EIP payments. When you prepared your tax return you were asked in the Federal Review section if you had received those payments. If you said you did not receive the payment(s) then the stimulus payment was put on line 30 of your tax return as a recovery rebate credit. The IRS cross checks every return with an amount on line 30. If the IRS sees that they already issued the EIP payment(s) to you then they adjust your refund or you even end up with tax due.

Check your IRS account---does the IRS say they sent you a payment that you did not receive? (If you filed a joint return you need to check for both spouses.) If so you can ask for a trace to be put on the payment.

https://www.irs.gov/payments/view-your-tax-account

If you were issued a payment and have not received it, see How do I request a payment trace to track my first or second Economic Impact Payments?

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

VolvoGirl

Level 15

That is not an Audit. That is one of the list of generic reasons they give if they changed the Recovery rebate credit on line 30. How much is on 1040 line 30?

A common adjustment this year is if you claimed the Recovery rebate credit on 1040 line 30 when you already got the Stimulus payment or got the second one after you filed or reported the wrong amounts or entered the wrong amounts in the 2 boxes. If you entered the total you got for both rounds in the same box it would think you didn't get the other one. The IRS knows how much they already sent you. You might have tried to claim it again on line 30.

If you claimed a missing stimulus payment on your return but the IRS took it off you have to ask the IRS. They think they already sent it to you. Did you get the 2nd round after you filed your return? Maybe it went to an account you don't remember. Or you got a check or a card. It was probably easy to miss the debit card in the mail and think it was junk mail. They have to put a trace on it.

How to put a trace on a missing 1st or 2nd Stimulus payment. IRS for Payment Issued but Lost, Stolen, Destroyed or Not Received

See question F3 here, you can expand it to see how to put a trace on it.

https://www.irs.gov/newsroom/2020-recovery-rebate-credit-topic-f-finding-the-first-and-second-economic-impact-payment-amounts-to-calculate-the-2020-recovery-rebate-credit