Received IRS Notice CP11 concerning Form 6251 miscalculation

[pdedes]

I received IRS Notice CP11 which stated that the IRS changed my tax return and I owe almost $2,000.00. They state that there was either an error in the computation for the AMT on Form 6251 or an error in the Transfer of the Form 6251 amount to my return. All these calculations are done by TurboTax, so I don't understand why there is computational error or an error in transferring the amounts.

The notice provides side-by-side values of how Turbo Tax calculates Adjusted Gross income (Form 1040 line 11) and how the IRS calculated it. They are identical. Same with Taxable Income (Form 1040 line 15). Identical again. However, the calculated value for Total Tax (Form 1040 line 24) is different.

The CP11 also lists "Your payments and credits". All these, including the total, match exactly what I have in my return.

I need to understand why the Turbo Tax's calculated "Total Tax" is not the same as what the IRS calculated.

I've been using TurboTax since 1999, and this is the first time I've been challenged by the IRS.

[DoninGA]

Use the TurboTax Audit Support Center website to speak with an agent who will assist you in understanding the IRS notice you received - https://support.turbotax.intuit.com/irs-notice/audit-support/

IRS Notice CP11 - https://www.irs.gov/individuals/understanding-your-cp11-notice

[pdedes]

I have a case open with TaxAudit. When I filed my taxes, I purchased that option. My case has been received and I was told they would get back to me in 7-10 working days.

[warrenk1]

I had the same thing happen to me, although mine is for an even larger sum of money :(.  Turbotax and the audit defense have been totally useless thus far, but I already mailed my disagreement letter to the IRS and waiting to hear back.  I am at least glad to hear someone else had the same thing happen to them.  All of my calculations seem to be correct and the IRS said my AMT form only had 1 line filled out on it.  This is bizarre since my copy of my return has both pages of the form fully complete and filled out and I file electronically.  I recalled seeing a message this year that the AMT form wouldn't be available on TurboTax until I think March 17th, so I waited until after that date to file, even though I submitted most of my numbers earlier.  I wonder if their delayed form caused some sort of error?  That's my optimisitc theory but I would love to hear from others!

[pdedes]

I had sold several rental houses in 2021, with depreciation recapture and all the other issues that come along with that. So I got an early start  on my taxes to give myself time. I waited over a month for that Form 6251 to be ready, and filed shortly after it was available. After reading your post, I wonder if adding in the form late in the game could have caused a bad calculation in TT. It doesn't seem logical, but if we both experienced the same thing, you have to wonder.

[Quenton]

I have exactly the same issue this year. How was yours resolved?

[pdedes]

I had to pay the penalty that the IRS calculated.

[Quenton]

Thanks!

I am just wondering:

Did you confront Turbotax regarding a potential error or their misinterpretation of the tax forms?

Did you get (or request) a line by line description from the IRS of how they changed your return to reflect the $ owed?

Did you present your case to the IRS with a letter documenting your issue with their results?

Did it happen to you again in 2023?

[pdedes]

I opened a case with Turbro Tax. They said i didn't use the 6251 in their system prior to filing. I completed my return before the 6251 was available but couldn't finalize it until it was ready. When it became available, i ran the final check in TT, and assumed it was included in all the calculations. So, when TT said there was nothing else they could do for me, I paid the penalty, which wasn't that much, and moved on. Yes, the IRS provided me their calculations, but it was not that clear to me what they had changed. At this point, two years later, I don't recall all the details. I don't advocate for rolling over with TT or the IRS. But my time was at a premium at that point, and i paid the penalty and went on.

Tax Year was unusual for me in that i sold a lot of properties. It has not been a problem since then.