I amended my tax return because a capital loss carryover was missed. The amended filing showed an expected refund. Instead, weeks later, IRS issued a payment due notice.
The transcript shows: 290 additional tax assessed
Called IRS and they said "Qualified Dividend Capital Gain Worksheet was used when Schedule D should have been used". This could be a red herring so take it with a grain of salt.
What could be going on here? How should I proceed?
did you have gains or losses in 2023 or only a carry-forward ?
I'm guessing no gain/loss.
Did you attach Schedule D to your 1040-X?
IRS expected 1040-X Line 8 to show" SCH D ".
You can resubmit the amendment with explanation that Line 8 was wrong.
Amount paid Line 16 will depend on whether you send the $290 now or hold off for another IRS response.
Thank you for your response, @fanfare!
I had a small gain and a larger carry-forward loss. The carry-forward loss was missed in the original filing. Once it was added to Form 8582 (Passive Activity Loss Limitations), it resulted in the calculation of a refund.
Schedule D was attached to 1040-X.
Line 6 (tax liability method) of 1040-X shows QDCGTW.
Line 8 seems irrelevant (Subtract line 7 from line 6).
I'm not familiar with 8582 and how it affects Schedule D,
and the proper tax worksheet to use in your situation.
Line 6 has the worksheet notation.