Recently I received a CP11 stating IRS changed the nonrefundable credit on my tax return because I did not complete or attach the schedule 3 to my tax return, resulting in additional $327 tax due, $48 penalty for "failure to pay proper estimated tax", and $3.02 interest charge.
Considering I filed both my federal and state taxes through TurboTax electronically, I checked my record packet and was able to find the schedule 3.
The letter states I should call if I disagree with the changes IRS has made to my tax return. IRS website also indicated that missing document can be faxed to them while on the phone. (https://www.irs.gov/individuals/understanding-your-cp11-notice)
1st call on 9/14/21. After explaining my situation and holding for a total of approximately 2 hours, was told there were something wrong on their side and the person corrected it. I was told I did not have to do anything more. When I asked how I would reference this call for future records, I was told he will "notate the conversation on my account in their system." I then asked if I can receive something in writing certifying situation has been resolved, I was told I should receive a letter from them in 3-5 working days.
5 working days go by but no letter. I started calling them again on 9/22 but most of the time a recording will say due to the volume of calls at the moment, they can not take any more calls, and to try back later or the next day. I tried 4 more times this afternoon but got the same message.
On 9/23, after trying for nearly 10 times, call got through to my 2nd conversation with IRS. After holding for about 30 minutes, person that answered the call stated she does not see any notes in their system, and that she needs to put me on another hold so she can research my account. After holding for another 10 minutes, the call disconnected (I was on a land line).
Tried calling back many times and have not been able to get anyone on the phone again.
Question: IRS says I didn't attach a schedule 3 to my tax return transmitted electronically via TurboTax.
1. Is it possible that a required form was not transmitted to IRS by TurbuTax?
2. Is the $48 penalty resulting from IRS thinking I didn't pay sufficient taxes, due to missing schedule 3?
3. Should I just mail the schedule 3 to IRS? Where should I send it to, as only address found on the letter appears to be for sending payments.
Call the IRS between 7:00 and 8:00 AM in your time zone. When you push the buttons and it asks for your social security number put #0 instead of your social security number. That confuses their computer and sends you to the next available live person.
Any electronic transmission can have an error in it and not go through properly. Mailing would most likely be a waste of time. The IRS has trailers of mail in parking lots that they will take months to get to.
Sometimes they seem to hire people to answer the phones that don't know what they are doing. I just keep trying until I find one that does do what they say they will. It sounds like the problem is on their end. I would fax the form even if you are not on the phone with them With the fax include a cover sheet with your name and what is going on. Also fax a copy of the CP11 letter. Number the fax pages like 1 of 3, 2 of 3, etc.
Print out the Schedule 3 that shows your credit.
Get Form 1040-X from the IRS web site.
If you aren’t changing any dollar amounts you originally reported, you don't have to do column A B C.
So leave that all blank.
Just fill out Part III explanation stating that " IRS needs Schedule 3 and here it is."
Include a copy of the CP notice and allow 30-60 or more days for a resolution.
IRS will attach the Schedule to your return and mark it to be processed some more.
Thank you for the suggestion.
I got through to IRS again and was told there is a "pending transaction" in their system since "year 2021, week 38, day 00", which suggests 9/20/21. Per the person, it "usually takes 2 weeks for transaction to post", then another 1-2 weeks for a letter to generate.
I'm quite concerned about taking someone's "word" that its being taken care of and I don't need to do anything more. But I'm also a bit concerned that if I send a 1040x, it might further confuse them and complicate the situation, IF a "fix" is already pending.
My CP11 letter is dated 9/6/21 and the additional tax due date is 9/27/21. Should I give it some more time, or just go ahead and send the 1040x?
Understood, thanks for the reply.
Thanks for the reply and very appreciative of your suggestion.
But unfortunately the taxpayer advocate lines were not helpful.
Tried calling the local office in Los Angeles first. Couldn't get out of the recordings. 2 of the 5 recorded options appears it might apply to my situation.
Option 2 = general questions. This option led me to a recorded message saying to contact IRS directly or look for additional information on IRS website before disconnecting the call.
Option 5 = non of the previous 4 options apply. This option led me to leave a message.
Not being able to find anyone live, I called the National Tax Advocate line. After being on hold, the person who answered the call immediate said there is nothing the advocates can do, before I even said what the letter I've received was about. She insisted that I need to speak with the IRS directly. It took me 2-3 minutes to convince her to even listen what the letter was about. After I've explained the situation, she again said she can not give any suggestions or advice, and reiterated there is nothing they can do to help. Only thing she can do was to transfer me to the IRS.
So I spoke to the IRS again earlier this afternoon. Person I spoke to stated there are notes showing and adjustment has been made and a letter dated 10/11 will be sent out around that date saying my account has been credited and I don't owe anything. It might take up to 2 weeks to receive the letter. In the mean time, I was told I can also check status/transcript online by creating an account on irs.com. The person confirmed I don't need to do anything else.
I've noted the name and ID number of each person I've spoken to at IRS since the beginning. Considering the CP11 says I have 60 days (11/4) to reply to the letter if I reply by mail, I'm now leaning towards waiting until after 10/11, then check the status either online or by calling IRS again and using the automated system to see if my due amount has in fact been changed. If my due amount has been updated, then I'll just wait for the letter to arrive. If my due amount is still not changed, then I'll go the 1040x route by mailing the Schedule 3 to IRS via certified mail with return receipt.
Thanks to everyone who took the time to read my situation and provide suggestions. I will report back again after 10/11.
I called IRS on 10/11. The automated system reflect the changes were made and a $0 balance owed. So I decided to just wait for the formal letter to arrive.
On 10/18, I received formal letter from IRS showing amount due at $0.00.
Thanks to all again for the suggestions!