CP12

[ASAJAY]

I got a CP12 letter last week.  So, I went and looked at my numbers.  Upgraded TurboTax 2021.  And the TurboTax2021 calculations remained the same.  However, if I go directly to the tax tables published by the IRS I get a different number for my refund than what I filed back in February.  I don't understand.  Any ideas?

The IRS' numbers are wrong regardless, but I want to have solid footing when I argue with them.

Thanks

Jay

[NCperson]

@ASAJAY - more details please

1) what is the EXACT amount of the IRS adjustment

2) what is on Line 28 or Form 1040?

3) what is on Line 30 of Form 1040?

let's look at this with an open mind - unlikely the IRS is wrong.....

[VolvoGirl]

Are you comparing the tax on 1040 line 16 with the tax tables?  Is line 16 less?  That probably is not the reason for the IRS adjusting your refund.

It depends on what kind of income you have.  There are like 7 different ways to figure the tax.

See the IRS worksheet on 1040 page 36 for how the tax is figured.  Turbo Tax uses the same worksheet.

https://www.irs.gov/pub/irs-pdf/i1040gi.pdf

If you have capital gains or qualified dividends the tax is not taken from the tax table but is calculated separately from schedule D.  The tax will be calculated on the Qualified Dividends and Capital Gain Tax Worksheet.  It does not get filed with your return.

In the online version you need to save your return as a pdf file and include all worksheets to see it.

For the Desktop version you can switch to Forms Mode and open the worksheet to see it.  Click Forms in the upper right (upper left for Mac) and look through the list and open the Qualified Dividends and Capital Gain Tax Worksheet.

You can probably tell because the tax on 1040 will be less than the Tax Table

https://ttlc.intuit.com/community/forms/help/form-1040-line-11-amount-is-less-than-standard-irs-tax-...

[ASAJAY]

Thanks.  I'll have to look but I bet it's because of my qualified dividends.

I've requested a transcript from the IRS.  That should show where their numbers are different than mine.  Thanks again.

[VolvoGirl]

What did the IRS letter say?  Did it mention the Recovery Rebate Credit?  Did it give 5 generic reasons?  How much did they change your refund?

[ASAJAY]

0 on both lines 28 and 30.  My suspicion is that they gave me the standard deduction instead of my itemized deductions.  I should be able to see it from the transcript I requested.

Something similar happened to my son two years ago.  His taxes paid from his paychecks never got entered by the IRS.  So he had taxable income, and zero taxes paid.  Got the transcript.  Compared line-by-line.  IRS had zero on line 33.

Thanks.  

[ASAJAY]

They simply stated that I made an error on line 15.  No mention of Recovery Rebate Credit.  No 5 generic reasons.  $1056 less refund.

My guess is they gave me the standard deduction instead of my itemized deductions.

We'll see what it is when I get my transcript.  Should pop right out.

Thanks again.

[VolvoGirl]

What kind of income did you have?  Did you get any 1099R forms?   You might have got the wrong taxable amount on line 4b or 5b.  Or entered a 1099R on the wrong line so the IRS missed it.  Or did you get any 1099NEC and not report it on Schedule C as self employment?

[Critter-3]

@ASAJAY 

Just a guess ... did  you mail in the return?  IF so the data entry person at the IRS is probably to blame since line 15 is a calculated amount which is automatic  based on entries on lines 12a&b.   Always efile when possible ... same goes for your son.  Missing withholding was either a data entry error by the IRS or his failure to attach the paper W-2 to the mailed in return ... without that paper document to support the withholding claimed the IRS will disallow the entry.