I received a mailing from IRS (CP11) that they had found an error in the Recovery Rebate Credit area.

[slwrel]

What is the recovery rebate credit?

[MayaD]

The first two rounds of Economic Impact Payments (stimulus) were advance payments of the 2020 Recovery Rebate Credit.

If you didn't get a first and second Economic Impact Payment or got less than the full amounts, you may be eligible to claim the 2020 Recovery Rebate Credit. 2020 Recovery Rebate Credit

[CC74]

I got the same letter.  Here is what I have been able to decipher from reading on the Turbo Tax Community discussions and my own situation:

1.  Although eligible, we did not receive any $1400 payments last year for us as couple.  We would have received $2800 total.  I downloaded all transactions from our personal bank account for 2021 to confirm for myself we didn't receive any payments. 

2.  I have tried to call the IRS after receiving the CP11 letter stating we owed more taxes due to an error on the calculation of submitted 1040 form.  I couldn't find any errors on my submission so then I started researching.

3.  In this year's Turbo Tax release, as I understand it, the software "thinks" you have received at least one payment of $1400.  If you process your return with the information defaulted AND then enter $2800 as what you like to be credited to you the software says you OWE money rather than RECEIVE a credit.  SOOOOO, in my case it thinks I am claiming three $1400 credits rather than two.  AGAIN, I WANT TO CLEARLY STATE THAT IS THE WAY I UNDERSTAND IT.  

4.  RECOVERY REBATE CREDIT WORKSHEET form seems to work correctly IF you really did receive a payment of either $1400 or $2800.  In my case, the disconnect for me is that we have not received ANY PAYMENT during 2021.  Hence, the IRS thinks we have received at least one $1400 and says that my submitted return has a calculation error.

5.  I have researched the IRS website and trying to determine how to trace any payments made to us.  It states 4-6 weeks for that search to occur.

6.  In the meantime, I waited 53 minutes on HOLD to be told no specific answers can be given to a caller about this issue and their account.  Hence, I am now initiating the TRACE PAYMENT.

[BillM223]

In regard to the CP11, the IRS states:

"If you disagree, contact us at the toll-free number show at the top right corner of your notice, or respond by mail to the address on your notice. If you write to us, include a copy of the notice along with your correspondence or documentation.

We’ll reverse most changes we made if we increased the amount you owe or if your return requested a refund. However, you must contact us within 60 days from the date of your notice to request the reversal. You don’t need to prove an explanation or additional documents when you request the reversal, but we’ll consider any information you provide us.  However, if we don’t receive information that supports your original return, we may forward your case for audit, in which case the audit staff will contact you within 6 weeks to explain the process and your rights. We’re not required to reverse changes we made to the tax withholding or estimated tax payments you reported but will consider the information you provide us.

If you don’t contact us within the 60-day period, the changes won’t be reversed and you’ll lose your right to appeal our decision before payment of the tax. Following the payment of the tax, you may file a claim for refund to dispute the changes. Generally, you must submit the claim within 3 years from the date you filed the tax return, or within 2 years from the date of your last payment for this tax, whichever is later."

So assemble all your bank statements for 2020 to 2021 to show that you did not receive the rebates (of course, you may find that you did and filled out you return incorrectly)...the most important thing is to respond to the IRS, if only to say, "Yeah, you guys are right, I accept the change."

@slwrel

[CC74]

So......you have to send in your bank statements to prove you didn't receive the money????

[SForrestLO]

Please see this Turbo Tax help artile. 

I got a CP11 Notice from the IRS.
https://ttlc.intuit.com/community/irs/help/i-got-a-cp11-notice-from-the-irs/00/27159

[Taxes4Shaq]

I received the IRS CP11 notice.  Is it necessary to amend my tax return for audit purposes, or just pay the tax owed?

[DoninGA]

---

@Taxes4Shaq wrote:

I received the IRS CP11 notice.  Is it necessary to amend my tax return for audit purposes, or just pay the tax owed?

---

You only need to pay the taxes owed as noted on the IRS notice you received.

[hectorapp]

Please advise this is for my 2021 tax return

[xmasbaby0]

@hectorapp   You have not provided any details for us, so we do not know what your issue is.   Did you get a letter from the IRS?   Did they reduce your refund or say that you owe more tax now?

TurboTax does not get any information from the IRS after you file your tax return, so no one at TT knows why your refund was less.

You have not mentioned any specific amounts.  Sometimes we can make an educated guess as to the reason for your reduced refund if you mention specific amounts--for example if your refund was short by $1400 per person---it is likely to be a mix up regarding the 3rd EIP payment.    If you received the 3rd stimulus check of $1400 per person in 2021 then you got letter 6475 from the IRS about it.   You needed to enter the amount you received.   If you already received that money then line 30 on your Form 1040 should have been blank.

  If it is short by $1800 or  $1500 or  a multiple of that amount  ---   maybe a mixup regarding the advance child tax credit payments. If you received monthly child tax credit payments of $250 or $300 per month between July and December of 2021, then you got letter 6419 from the IRS, and you were required to enter the amount of the advance payments.   Only the remaining amount of the CTC should have been on line 28 of your Form 1040.

The IRS knows how much they sent to you for the 3rd stimulus check and they know how much they sent for advance child tax credit payments.   If you answered something incorrectly on your tax return then the IRS made a correction that resulted in a reduced refund for you. 

 Or---the fees you were supposed to pay for using TurboTax + the "refund processing fee" charged by the third party bank….

Did you choose to have TT fees deducted from your Federal refund?  (Remember that if you did that, you also agreed to an extra refund processing fee of $39.99 or $44.99 in CA)

How can I see my TurboTax  fees?   

https://ttlc.intuit.com/questions/2565973-how-do-i-review-my-fees-in-turbotax-online

What is Refund Processing Service?

The IRS will send you a letter that explains why your refund was reduced.   Meanwhile it might help you to check your online IRS account.

https://www.irs.gov/payments/your-online-account

https://blog.turbotax.intuit.com/tax-refunds/why-is-my-tax-refund-not-what-i-expected-49240/

https://www.irs.gov/newsroom/questions-and-answers-about-the-third-round-economic-impact-payment-top...

If you need to trace a payment that the IRS says has been issued to you, mail or fax a completed IRS Form 3911, Taxpayer Statement Regarding Refund.

Updated IRS FAQ about recovery rebate credit

https://www.irs.gov/pub/taxpros/fs-2022-27.pdf

[Critter-3]

If you never received a stimulus deposit or check—and the IRS says they paid you—then you should ask the IRS to trace your payment.

The fastest way to initiate a trace is to contact the IRS by calling us at 800-919-9835.

You can also complete Form 3911:

• Write "EIP3" on the top of the form to identify the payment you want to trace.
• Complete the form answering all refund questions as they relate to your Economic Impact Payment.
• When completing item 7 under Section 1:
• Check the box for "Individual" as the Type of return
• Enter "2021" as the Tax Period
• Do not write anything for the Date Filed
• Sign the form. If you file married filing jointly, both spouses must sign the form.

You will generally receive a response 6 weeks after we receive your request for a payment trace, but there may be delays due to limited staffing.