I just received a letter from the IRS stating they increased last year's underpayment penalty by 153%. I'm retired and most of my income is from investments. I choose to skip the estimated tax payments because in general I make more money from my investments than the cost of underpayment penalty. I've used Turbotax for decades with hard copies mailed in. Yet here in November, they send me a letter demanding 153% more money in 3 weeks claiming they "found an error". Doesn't Turbotax guarantee that all calculations are correct? Shouldn't Turbotax pay the extra because of the "error"? How do I get through to Turbotax because so far I can't find a way to contact them. Thanks.
Interest and penalties are paid by TurboTax for a calculation error in the software but not any additional taxes owed.
See this TurboTax support FAQ for the calculation guarantee - https://ttlc.intuit.com/turbotax-support/en-us/help-article/account-management/turbotax-100-accurate-calculation-guarantee/L30iuaxMC_US_en_US?uid=larg7nji
Contact TurboTax Audit Support Center for assistance with the IRS letter you received - https://support.turbotax.intuit.com/irs-notice/audit-support/
Thanks for the links. I should have been a little more clear in that the 153% increase is on the underpayment penalty only, not the taxes.
OK ... the program only calculates an ESTIMATED underpayment penalty based on the info you provide of when you made the payments up to the filing deadline of 4/15. The IRS reserves the right to calculate any more underpayment penalties + interest based on the info they have of when and how they actually received the payments and balance due on the return.