IRS Notification of error related to Refundable Child Tax Credit - missing Letter 6419 - what to do next??

[PhilH2]

I received a notice from the IRS - a notification of error that has turned out to be related to Refundable Child Tax Credits that I did NOT realize had been paid directly to my bank account ($1k over 6 monthly payments at end of '21).  I did NOT receive, nor did my wife, receive any IRS Letter 6419's for any of the payments.

The IRS wants me to re-pay that $1k plus interest since I did not declare it in my 1040 return for '21.  Since I have now found these direct paymens and agree they were paid, what do I do?  Do I

1)  Fix the error in my  '21 1040 tax return in Turbo Tax and make the $1k + interest pmt inside of Turbo Tax.??

2)  Pay the IRS directly via the EIT (IRS account)?  But, then what do I do in Turbotax to make the return match and reflect the fixes?  Is it important to fix my (submitted) return so the correct amount is retained in the '21 tax file?  Is it important to do this before I start my '22 return?

Thanks!

[KrisD15]

2.

I suggest you pay using the directions the IRS sent you in the notice. They DO NOT want you to amend.

Next, you can then TELL TURBOTAX that you are amending the 2021 Federal return to make the changes, select that you are MAILING in the 1040X (BUT DON'T MAIL IT) 

The TurboTax 2021 tax file will reflect the changes you had to make. It probably will not make any difference with your 2022 return, but will be accurate in case you need to look back at it or use it for personal financial reasons, such as a bank loan. 

Use your AGI from the Original Return if that is needed to efile your 2022 Tax Year return. 

[PhilH2]

Thanks much for the help!