I received the cp2000 in ju.e regarding 2022 taxes. Initially the form said that I didn't enter all of the 1099's o received. I was able ro verify they were all entered. On line 5a it shows a total of 52626
On line 5b the taxable amt was decreased to 26625. I reviewed all of the information entered from the 1099R forms, all are correct. 2 of them are marked M1 in line 7 for distribution codes. All the others are just coded 1. I provided the information through their portal and they state 5b should still be 52626. I don't understand why the program decreases the taxable amt when everything was inputted correctly. I did not purchase the audit defense. They are saying I owe $11000 towards taxable income plus the interest or penalties. I have had 1099R forms in the past and never had an issue. Not sure what happened this time. Any help would he greatly appreciated. The2 marked M1 were to pay off loans taken from our 401K's during covid when we closed the accounts.
