TurboTax guarantee and support after filing

[sun2sirius1]

I filed my 2022 taxes with TurboTax just like I did for many years, normally IRS debits the remaining tax directly from my bank account that I specify in TurboTax at the time of e-file. Apparently due to some glitch this feature did not work this year and the IRS charged me penalty/interest for not paying in time.

Is it true that the TurboTax support cannot verify the information that was entered and that it was properly sent to the IRS? What about the accuracy guarantee and "peace of mind" that TurboTax claims at the time of sale? The support person offered that I request a refund and sent me a link to the form. My request was immediately declined without even looking at the details: "In most cases, discrepancies between what the IRS and/or the State calculated and what TurboTax calculated are due to the information that was entered." But wait, how can we verify the information that was entered? Apparently we can't, after e-file and your payment, all bets are off and you are on your own. As per the explanation, if you printed or e-filed the return, you state that you liked the software and it is not refundable.

Another questions - the refund request is like a support request with a case # etc., but there is no way to respond or provide any details - case closed, that's it. What kind of support is it?

[DoninGA]

If you had federal taxes owed, in the File section of the program on Step 2 you would have selected the option for direct debit from your bank account.  You had to enter the bank routing, account number and the date of payment.  This information would have been sent with the filed federal tax return.

You need to look at the Federal Information Worksheet.  On Part V of the worksheet will be the information that you entered.  The debit box will be checked, the type of account, checking or savings, will be checked, the bank name will be entered, the bank routing and account numbers will be entered and the date of payment will be entered.

To access your current or prior year online tax returns sign onto the TurboTax website with the User ID you used to create the account - https://myturbotax.intuit.com/

When you sign onto your online account and land on the Tax Home web page, scroll down and click on Add a state. 

This will take you back to the 2022 online tax return.

Click on Tax Tools on the left side of the online program screen.  Then click on Print Center.  Then click on Print, save or preview this year's return.  Choose the option Include government and TurboTax worksheets

The Accuracy Guarantee is for calculations done by the software.  It does not guarantee user entries are accurate.

See this TurboTax support FAQ for the 100% Accurate Calculation Guarantee - https://ttlc.intuit.com/turbotax-support/en-us/help-article/account-management/turbotax-100-accurate...

Requests for refund of the TurboTax online edition account fees can only be handled by TurboTax support.  However, it is doubtful that they would refund the account fees since the tax return was completed and filed.

When contacting support use the key words Billing Issue.

See this TurboTax support FAQ for contacting support - https://ttlc.intuit.com/turbotax-support/en-us/help-article/account-management/turbotax-phone-number...

Support can also be reached by messaging them on these pages https://www.facebook.com/turbotax/ and https://twitter.com/TeamTurboTax

[VolvoGirl]

Did they charge you the whole tax due?  Or just penalties and interest?  

If the bank rejected the payment better call the bank and double check the routing and account number you entered.  Or if the payment did come out of you account maybe the IRS is billing you for an underpayment payment penalty for owing too much?  Did you have an amount on 1040 line 38?  

The amount Turbo Tax calculates on your 1040 line 38 is only an estimate.  Turbo Tax can not figure it accurately because they don't know exactly when the IRS or state will get your return and tax due payment.  It's very common and normal and expected for the IRS or state to bill you for more or send you a refund.

[DoninGA]

Additionally, you said the IRS is charging interest and penalties for not paying the amount owed on time.

Look at the Electronic Postmark Report.  It will have the date/time that you e-filed the tax return and the date it was Accepted by the IRS.

[sun2sirius1]

Thanks a lot for the answer! I just now checked the tax return PDF for "Federal Information Worksheet" - it does not exist in 2022 return, nor is it in 2021 return, I only found this worksheet in 2020 and prior returns. The  TurboTax support person told me to look at page 2 of form 1040, Refund, lines 35 a/b, and said that it would be the same bank information. These lines however are strike through with XXXXXXX and no selection of "Checking/Saving" - the support person said this is for security reasons, but I think it is because I am not getting a refund. Support only verified the last 4 digits of the account number and they matched - I am always very careful when specifying payment info. They could not verify the entire bank info I entered - again, for security reasons they do not have that access.

But I understand why I do not see the Federal Information Worksheet - because when I download the tax return it comes without the worksheets. The trick with "Add a State" was very helpful and the only way to download the full document with worksheets. The part V section shows all the correct information and the "direct debit of federal balance due" box checked, like it was supposed to be. And there is a date for when to debit - all in the right order. So I guess this verifies that the e-file sent the correct information and that the support person I got was not competent.

Now, what does this mean? Why did IRS not debit my bank account? I am sure I had enough funds in the bank, otherwise there would be a different issue and I would be notified by the bank and like by the IRS. Any advice where to go from here? I would really not like to pay the penalty/interest as it was not my fault that the funds were not debited. Or is it my responsibility to watch my bank account to make sure the payment is deducted? Should I be contacting the IRS to make sure they debit the payment?

[sun2sirius1]

I do not see where to get the Electronic Postmark Report, but I have an email that the return was accepted on 

03/30/2023. It also say this on my TurboTax dashboard. And the date to withdraw was 04/17/2023 as suggested by the software. 

[sun2sirius1]

No, there was no any payment from my bank account. I assume, if the bank rejected the payment then I would know and the IRS would probably charge me for NSF returned payment or something. The amount in the IRS notice exactly matches the amount owed on the return, plus the penalties and interest on that amount. It is like if I was supposed to pay on my own and just didn't pay. This is why I blamed TurboTax - per the IRS, it is like they were not directed to debit the amount due and like I just failed to pay.

The TurboTax support person did not know about the Federal Information Worksheet, but now that I was able to download the full report, I have a proof that my bank information was supplied properly, would IRS have to refund me the penalty/interest, as the glitch seems to be on their side?

[DoninGA · Accepted solution]

You need to contact the IRS since it appears that you did everything properly to pay the taxes owed and on time.  The IRS is certainly not infallible and they do make mistakes.

If there is a phone number on the notice you received then call that number and speak directly with an agent.

If there is not a phone number, then use this procedure to contact the IRS -

Call the IRS: 1-800-829-1040 hours 7 AM - 7 PM local time Monday-Friday
When calling the IRS do NOT choose the first option re: "Refund", or it will send you to an automated phone line.
So after first choosing your language, then do NOT choose Option 1 (refund info). Choose option 2 for "personal income tax" instead.
Then press 1 for "form, tax history, or payment".
Then press 3 "for all other questions."
Then press 2 "for all other questions."
- When it asks you to enter your SSN or EIN to access your account information, don't enter anything.
- After it asks twice, you will get another menu.

Press 2 for personal or individual tax questions.
Then press 3 for all other inquiries
It should then transfer you to an agent.

[sun2sirius1]

Just as a conclusion for this case and in a hope that it helps someone else, I was able to talk to the IRS agent and here is what I was told. It was my responsibility to monitor my bank account and if the moneys were not debited in a day or two after the due date, it was my responsibility to call the IRS and and make sure they receive the payment. The IRS is not responsible to notify me that their attempt to debit the funds was unsuccessful, they will only send the notice at the time I already owe the penalty and interest.

So do not rely on specifying your bank information in TurboTax, there is no guarantee that the payment will go through or will even be attempted. The sure way to make the payment is to do it yourself via the IRS online payment website and get a Transaction ID (confirmation number).