The IRS does not agree with the refund amount calculated by Turbo Tax for my 2019 tax return. How do I proceed?

If the IRS reduced the refund then they usually send a letter in about 3 weeks explaining it.

Nobody here can see see your tax return - just what did they change or disallow?

Did you check all the lines on your return?  Especially in the payments section?  Maybe you entered too much withholding or estimated payments or extension payment.  Do you have backup for all your income and payments?  

that letter should explain the change. your options are to call the IRS at the number listed for further clarification or post info in this forum about what lines were changed. then we may be able to offer a further explanation. 

the IRS says that if you haven't gotten answers after contacting IRS several times call the Taxpayer Advocate at 877-777-4778​ or for TTY/TDD 800-829-4059​. this may not work either since the TAS is also swamped with requests.

The letter called CP21B noted that they reduced my taxes that were withheld and increased my dividends and capital gains (I got a tax transcript).  I still do not know what taxes that were withheld were reduced nor do I know what investments had increased dividends and capital gains.  All dividends and capital gains info was downloaded from the brokerage company.  I finally got to talk to a real person after being dropped by 3 IRS agents and after many 5-7 minute holds he told me he could not answer the questions and said that I would get another letter within 30 days explaining the details.  I really doubt that any letter will answer the above questions.  I am thinking of booking a sit-down talk with someone at an IRS office.

See my reply to a previous reply posted a minute ago.

I have all the paperwork.  I had 12 1099Rs.  How would I know which one was reduced by $300?

Well withholding would come from W2 box 2 and any 1099 box 4 and from Social Security SSA-1099.   Check all those, add them up.   Maybe you imported a form and also manually entered it?  Maybe you entered a decimal point in the wrong place or left it out.  It's easy to make a typo.

For importing investments you still need to check it over before filing.  It might have imported wrong.  It's not always accurate.  

I didn't see your other reply.   12 1099R?  Wow.  Maybe you entered one twice.   Add up all the withholding from box 4.  Does it match your 1040 line 25b?

Save the pdf of your return with all the worksheets.  There's probably a detail sheet for each 1099R you can use to check  all your entries and match up.

Here's an alternate way to print by opening the filed return back up to print at the Print Center, where you can also get the worksheets.

Log in and at the Tax Home or in the section Your Tax Returns & Documents for 2020, look for a link Add a State.  Click on Add a State.  (you don't really add one.  That's just to open your return back up.)

After the return is open, click in the left menu column on TAX TOOLS, then PRINT CENTER.

Then choose Print, save, view this year's return.

The next screen should offer some options:  Just my tax returns or include government worksheets (optional), or include government and TurboTax worksheets (optional.)

I have checked all my 1099-Rs and they are all correct.  I have gotten a tax transcript.  It raises more questions since all dividends and brokerage info was downloaded into TurboTax, IRS wants to change those numbers.  I was just told finally by the 7th IRS agent, yes I have spoken to 7 IRS agents in the last two days that no one can answer my question but someone at the processing center and they only work via letters and I should hear an answer in 30 days.  I really doubt it.  Here is the letter I sent to the KC processing center:

INTERNAL REVENU SERVICE

KCSC

Kansas City, MO 64999

2019 Federal Income Tax and the IRS Response

Dear IRS:

In late March 2020, using TurboTax I completed my federal and state 2019 tax documents.  These documents were sent via certified US Mail with return receipts.  My state income tax refund was deposited into my checking account about 6 weeks later.  By July 14, 2020, the federal tax filing deadline, I had not received a return receipt, had not seen that my certified letter was delivered on the US Mail website, had not seen that the IRS was processing my refund and no money was deposited into my checking account by the IRS, I assumed my return was lost and re-filed my federal income tax.

The problem is that when I re-filed my federal income tax documents on July 14, 2020, I noticed that I had included a duplicate 1099-R in my first return.  Consequently, I removed the duplicate 1099-R and sent my federal tax return again via certified mail with a return receipt.  The new refund amount was $1012 more than the amount on the return I had sent in late March 2020. 

About a week after I sent off my second federal tax return, I noticed that the IRS had deposited what I thought was the correct amount, based on my 1st return, into my checking account, and a week or two after that, I got the return receipt from the first certified letter.

PROBLEM

On March 22, 2021, I received a CP21B letter from the IRS noting that my refund amount was reduced by $297 and the decrease in credit for tax withheld was $2435.  The problem is that the duplicate 1099-R stated the federal income tax withholding was $2138.28, and I didn’t change anything else on my return that was sent to the IRS in late March 2020.  The difference between 2435 and 2138.28 is $297, the amount that my refund was reduced.  I have checked all my 1099-R again to see if they were entered correctly into TurboTax and they were.

I have called the IRS 4 times and the Taxpayer Advocate 2 times and no one can answer that question of why my federal income tax withholding was reduced by $297.   I have gotten my federal income tax transcript for 2019 and there are other inconsistencies related to dividends and capital gains.  I am wondering why these changes in dividends and capital have only come to light after I requested a taxpayer transcript while trying to find out why the extra $297 was taken out of my refund.  Were these errors clear when I thought I got my total expected refund in July 2020 based on my 1st return?  Why did the IRS not reduce my expected refund in July 2020 because of these errors?  All dividends and brokerage transactions were downloaded from the brokerage company into TurboTax.

The last IRS person I spoke to could not answer these questions and told me that the IRS would get back to me within 30 days.  Given the IRS's past response to my 2019 tax return, I will be surprised if I get an answer to my questions from the IRS in 30 days. This letter is in response to a letter sent to me on 2021-08-26 asking for information.

Sincerely,

I have checked all 1099-R that were entered in my federal tax return and they are correct.  My estimated tax payments were confirmed by an IRS agent.

You sent a second tax return?  Was it an amended 1040X return?   That might part of your troubles.   You only file 1 return.   If you need to fix it you file an AMENDED 1040X return, but only after the IRS has processed the first return.

Then when you import your forms from the broker, etc.  you still need to double check it over.  There can be mistakes on the import or missing info.   You can't trust it to be right.

If you filed twice, you're lucky you got anything.

When IRS sees two returns your refund is frozen until a person can figure out what is going on..

What you missed is the 2nd return was filed 3.5 months after the first because it took them over 3.5 months to process my return.  Now I am trying to find out why the IRS reduced my second refund by $297 due to reasons that didn't appear on my first return.  The only difference between the first and second return is I had a duplicate 1099-R in the first that I removed from the second.

If you filed a second return after the first return was processed, IRS will REJECT it.

Not in my case.  My first 2019 return took 3.5 months to be processed.  My second 2019 return took 8 months to be processed.

I filed my 2019 taxes using turbo tax.  I got all the money I expected, about 3.5 months after filing.  During that time I didn't see anything happening about my return on the IRS website so I refiled just before the July 15, 2020 deadline.  When I review my previous 2019 return I discovered that I had entered a DUPLICATE 1099-R so I deleted that 1099 and refiled my 2019 federal tax return.  I made NO other changes.  The amount that turbo tax calculated and the IRS calculated is off by $297 in favor of the IRS.  What should I do? The IRS person I talked to said the problem is with Turbo Tax.  What should I do?

Did I make it clear that I sent my first return by certified US mail with a return receipt on March 30, 2020 and by July 14th had not gotten a return receipt, had not seen anything on the IRS website, had not seen any refund in my checking account and had not seen any delivery of my certified letter on the US Postal service website?  Who would not have thought that the tax return was lost?