2019 Return: IRS transcript ignored standard deduction, raised my taxes, and charged me a penalty

[csedayski]

I filed a paper return in 2019 that was processed only now. In my return, I opted for a standard deduction which naturally lowered my taxable income. I paid the taxes in full. When I checked my transcript online, IRS seems to have ignored the standard deduction making my taxable income the same as my AGI thus increasing my tax bill.  Furthermore, they charged me a penalty for the amount owed. 

I'm not sure what exactly happened, but this seems like an error at their end? How can I rectify this?

[Mike9241 · Accepted solution]

was your 2019 filing status married filing separately (MFS)? if so it's likely that your spouse filed first and used itemized deductions which required you to do the same. the IRS would change your standard deduction to $0.

if this is not your situation then you'll have to wait for the notice from the IRS which should come in 2 or 3 weeks. if you have questions about it post back.

[csedayski]

Thanks for the quick response. I'm not married, so this does not apply. I take it that the notice would lay out the details of why they left out standard deduction? I either case, would calling the IRS help?

[Critter-3]

WAIT for the IRS notice of explanation so you have an idea how to proceed.  Mailed in returns requires a human to data enter it and humans are not perfect so this could be just a simple data entry error.