I received a CP2000 notice from the IRS because I ...
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bmy12
Level 1

I received a CP2000 notice from the IRS because I failed to report proceeds from a Charles Schwab Form 1099-B. Is there a reason why Turbo Tax didn't automatically import this form when I used their import feature?

The IRS recently sent me a CP2000 notice for my 2018 tax return. After reviewing the discrepancy, it appears I didn't report the proceeds I had when I sold company's stock contained on Form 1099-B from Charles Schwab. When I worked on my tax return, I used the Turbo Tax import feature to download data from my various financial institutions. It looks like Turbo Tax imported some of the forms from Charles Schwab, but omitted Form 1099-B. While I understand it's my responsibility to double check the data that gets imported into Turbo Tax, I am disappointed that this form was missed (or I didn't get a notification that only a subset of data was imported). I must pay the IRS for the underreporting, which includes an additional negligence penalty and interest. 

 

Has anyone else ran into a similar problem? Would Turbo Tax ever accept responsibility for covering the negligence penalty and interest?

 

Thanks!

5 Replies
Anonymous
Not applicable

I received a CP2000 notice from the IRS because I failed to report proceeds from a Charles Schwab Form 1099-B. Is there a reason why Turbo Tax didn't automatically import this form when I used their import feature?

TT accuracy guarantee only pertains to its calculations.  with Charles Schwab, each 1099 must be checked to import.  so if you have multiple 1099's like dividends, interest, 1099B, 1099R each must be checked.  if you have multiple logins you must log in for each and then check off each 1099 you want imported.  

Critter-3
Level 15

I received a CP2000 notice from the IRS because I failed to report proceeds from a Charles Schwab Form 1099-B. Is there a reason why Turbo Tax didn't automatically import this form when I used their import feature?

Sorry but as you said ... you are responsible for reviewing the return for accuracy  prior to filing ... the program cannot possibly know if you missed a form entry or made a data entry error.  There is no program on the market that can take the place of your eyes and there never will be. 

 

 

spicyramen
Level 1

I received a CP2000 notice from the IRS because I failed to report proceeds from a Charles Schwab Form 1099-B. Is there a reason why Turbo Tax didn't automatically import this form when I used their import feature?

I had exactly the same issue. Charles Schwab Form 1099-B is not included in the Composite form (TAX YEAR 2018 FORM 1099 COMPOSITE YEAR-END SUMMARY ) and now I owe a lot. Did you get to contact Charles Schwab?

Anonymous
Not applicable

I received a CP2000 notice from the IRS because I failed to report proceeds from a Charles Schwab Form 1099-B. Is there a reason why Turbo Tax didn't automatically import this form when I used their import feature?

for Schwab you must check that all the forms that needed to be imported are checked off after you log in. 1099-div, 1099-int, 1099B. 1099-misc, 1099-R.   even then and this is true of most if not all brokers, some info that is reported can not be imported..  since TT is a do-it-yourself return, I would say checking the consolidated 1099 to make sure that either everything was imported or that you manually enter what isn't is your responsibility. 

Joe999
New Member

I received a CP2000 notice from the IRS because I failed to report proceeds from a Charles Schwab Form 1099-B. Is there a reason why Turbo Tax didn't automatically import this form when I used their import feature?

Yep. Same thing just happened to me. No more TurboTax for me. $129 only to get a huge penalty from IRS for underpayment. So disappointed. From now on, it’s paper returns for me. 

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