IRA Distribution Rollover Discrepancy

Forum|Forum|3 years ago
March 22, 2023
2 replies
16 views

I took an early distribution from my IRA in 2021. When completing my return in Turbotax, I selected that none of the money had been rolled over. I've confirmed that selection in my .tax file and online. However, the return which was filed indicated that over half had been rolled over and the IRS has issued a CP2000 for substantial underpayment of taxes (including a penalty). This appears to be a problem with the Turbotax online software.

Who can I contact to discuss. I tried the support line but couldn't find the option for this.

TurboTax Self Employed Online

DoninGA

Level 15

See this TurboTax support FAQ for the TurboTax Audit Support Center and a toll free number - https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-audit/turbotax-audit-support/L6AcMoNFD_US_en_US?uid=lfk4xikd

DenmcdAuthor

Level 2

Thanks I will reach out to them to see if they can help. I got through to someone on the phone and they gave me a mailing address (no phone number) to send documentation to. In the meantime, I owe the IRS a response (and a lot of money).

I think there is a problem with Turbotax online. I downloaded my .tax file and confirmed that I made the correct selections, but Turbotax reported substantial rollovers to the IRS.

DoninGA

Level 15

Just out of curiosity - On your Form 1040 is the word ROLLOVER printed on Line 4b?

Cynthiad66

Level 14

Since the IRS has issued a CP2000 notice, you will need to discuss this issue with the IRS. Please use the contact information in the upper right corner of the notice that you received from the IRS. If this withdrawal was indeed rolled over, you can provide the evidence to the IRS and they will make the correction.

Once the IRS is involved, all resolution has to be made with them. TurboTax does not receive any notice about your taxes once IRS accepts the return to be processed.

@Denmcd

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DenmcdAuthor

Level 2

The problem is a difference between what I entered when preparing my return online (no funds rolled over) and what was filed via Turbotax (a substantial value rolled over). I made the correct selection. The IRS is going on what Turbotax filed.