IRA Distribution Rollover Discrepancy

[Denmcd]

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.

DM

[DoninGA]

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/L6AcMoN...

[Denmcd]

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.

DM

[DoninGA]

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

[Denmcd]

Yes, it is even though I selected that none of the money had been rolled over.

DM

[VolvoGirl]

Did you have any other 1099R?  What code is in box 7 on it?  You opened the .tax2021 in the Desktop installed program?  You can make a sanitized copy for the moderator to look at.  Post the Token number you get.  The file is stripped out of all your Personal Info

TurboTax Desktop

1. Click into your return.

2. Click Online and select "Send Tax File to Agent".

3. This will generate a message that a diagnostic copy will be created. Click on OK, the tax file gets sanitized and transmitted to us.

4. Please provide the Token Number that was generated onto a response and we will give it to the moderator.

[Cynthiad66]

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

[Denmcd]

I only looked online at my previous year (using the amend return feature). I tried opening the .tax2021 file in desktop but it is not importing any data.

[Denmcd]

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.

[Denmcd]

I do not see these "Online" option in desktop for Mac. Also, when I import the .tax2021 it doesn't populate any of the fields ... it wants me to reenter all of my W2 and other information all over again.

DM

[Denmcd]

This is what I selected when preparing my return. However, the return was filed with a value in the "Less: Amounts rolled over" box in 1099-R summary and IRS is dinging me for underpaying, including a substantial penalty for underpayment.

[Denmcd]

It wasn't rolled over. That's the point and that's what I selected when prompted. TurboTax added values in the rolled over amount. I verified that "no rollover" was selected, yet values are populated in the return.  @Cynthiad66 

[fanfare]

you have a case for  a claim on the TurboTax Accuracy Guarantee.

Turbotax should pay your interest and penalty.

@Denmcd