I have paid my 2019 taxes with turbotax and paid for services, I am now getting a letter saying i owe more and interest is adding up

[dissatisfieduser]

I recently received a notice stating that I owed a penalty and interest for unpaid 2019 taxes.  I suspect that I am not the only one and this is what I think of a the Law of Unintended Consequences.  Typically, a guesstimate my taxes and file by April 15.  For 2019, I finished and sent a check for the entire amount due before the July 15, 2020 extended deadline.  Bear in mind that if I had filed for extension on April 15, 2020 and paid by check that I would have had till October 15, 2020 for the IRS to have processed my payment.  But because the filing date was extended to July 15, 2020 the payment by check was NOT considered a payment made by July 15, 2020 so a penalty and interest was added.  So if you get a similar notice it could be because you did not pay all of the taxes due by July 15, 2020.  Moral of the story, pay online.

[VolvoGirl]

How did you get a notice?  Did the IRS send you a letter?  Or from Turbo Tax when filing your 2020 return?  If it is in Turbo Tax then it is not about paying 2019 tax due late.  

If the IRS is billing you then you can ask them to waive it.

[bob1613]

I have appealed 3 times with the IRS and now am getting large amounts of interest attached to my account.

The IRS is considering my Long Term Insurance payout as an income even though I paid for the insurance

when I was working and had it taken out of my salary so taxes were taken out at that time.   The amount

the IRS is asking for interest is more than the insurance paid me.   According to the IRS wedsite 

 payments you received for a disability insurance policy that you paid the premiums for are not earned

income.   What do I do now?  My husband and I retired senior citizens and paying out more than 

$10,000. 00 is a hardship.   Thank you for your HELP.

[bob1613]

Will I get some Help!!!

[xmasbaby0]

I RECEIVED A LETTER FROM THE IRS/STATE

TurboTax does not receive any information from the IRS or your state after your return was filed, so no one at TurboTax knows about a letter you received from the IRS or the state.

(what the letters from the IRS mean)

I GOT A LETTER FROM THE IRS   

https://ttlc.intuit.com/questions/3605673-i-got-a-letter-or-notice-from-the-irs

I AM BEING AUDITED

If you purchased Audit Defense:

https://ttlc.intuit.com/questions/2924451-i-bought-max-or-audit-defense-and-now-i-m-being-audited

AUDIT SUPPORT

TurboTax has a special phone number for help with IRS/state tax letters, which will be easier than going through regular Customer Support.   At the page below, click on the blue button that says "Get Help from TurboTax Support".  Then it will ask you what tax year is your letter.  Then it will ask you what the letter concerns. Then it will show you the phone number during posted business hours.

https://support.turbotax.intuit.com/irs-notice/audit-support/

[xmasbaby0]

@bob1613 Hopefully  you get some help or clarification from audit support.   But meanwhile.....would mind telling us specifically what tax document you received from the long term disability insurance ----and where you entered it on your tax return?  I am wondering if the problem is that you entered it in the wrong place.

[bob1613]

On the W-2 form in box #1 wages, tips, other compensation $25,000.00 was entered.  In box #13 third

party sick pay a check X was entered.  The $25, 000,00  was the amount the disability insurance company agreed to a pay off after I contacted a lawyer to take over my case.   I was given $16, 400,00 and the

lawyer took $8,040.00 for his fee. 

[xmasbaby0]

So the disability was reported on a W-2  (not a 1099Misc?)   and there were no taxes withheld?  Nothing in box 2 of the W-2?