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Level 2
posted Jun 3, 2023 4:20:36 PM

TurboTax made a mistake, according to IRS

After filing via TurboTax, the IRS sent me a letter saying I owed another $1,126.26 in taxes, interest & penalties. How could that be?

0 12 1060
1 Best answer
Level 15
Jun 4, 2023 11:02:49 AM

Ok ... so when you completed the interview the amount paid with the extension was presented and it was up to you to make sure the amount was correct.  The program would have carried forward the amount estimated earlier expecting it to be paid with the extension ... if the amount was not correct it was up to you to correct the figure before you filed.  This is a user entry error and not a program issue.  

 

Log back into the return ... scroll down and click on ADD A STATE to let you back in then check what was in the program ... 

 

To enter, change or delete a payment made with an extension request (Federal, State, Local) -

  • Click on Federal Taxes (Personal using Home and Business)
  • Click on Deductions and Credits
  • Click on I'll choose what I work on (if shown)
  • Scroll down to Estimates and Other Taxes Paid
  • On Income Taxes Paid, click on the start or update button

On the next screen select the type of extension payment made and click on the start or update button

                                                                                                                                     
Or enter federal extension payment in the Search box located in the upper right of the program screen. Click on Jump to federal extension payment


The federal extension payment will be shown on Schedule 3 Line 10. The amount from Schedule 3 Part II Line 15 flows to Form 1040 Line 31.

 

12 Replies
Level 15
Jun 3, 2023 4:27:55 PM

99% of the time it is a user data entry error and not the program ... what exactly did they bill you for ? More penalties & interest ?  

 

I GOT A LETTER FROM THE IRS   

https://ttlc.intuit.com/questions/3605673-i-got-a-letter-or-notice-from-the-irs

 

I AM BEING AUDITED

If you purchased Audit Defense:

https://ttlc.intuit.com/questions/2924451-i-bought-max-or-audit-defense-and-now-i-m-being-audited

 

AUDIT SUPPORT

https://support.turbotax.intuit.com/irs-notice/audit-support/

Level 2
Jun 4, 2023 5:59:09 AM

Yes. More tax + penalties + interest. 

Level 15
Jun 4, 2023 6:09:56 AM

We cannot see what was sent ... so either contact someone who you can talk to in real time (see my last answer) or post more details here ...

 

What tax year is being referred to ?

What are the numbers after CP or LTR in the upper right hand corner of the notice?

What exactly did the IRS change?

Level 2
Jun 4, 2023 7:31:35 AM

Tax year 2022.

CP23

On schedule 3, line 10 and 1040SR lines 10 & 32, TurboTax indicated $4026. However, IRS figure was $2938.

Level 15
Jun 4, 2023 8:52:20 AM

schedule 3, line 10 is an extension payment.  Did you make a payment when you filed an extension?  Check you bank or credit card statement for the amount.  

1040SR line 10 is from Schedule 1 line 26.  What adjustment did you have on Schedule 1 lines 11-25?  https://www.irs.gov/pub/irs-pdf/f1040s1.pdf 

Level 2
Jun 4, 2023 8:58:54 AM

zero entry for Schedule 1 lines 11-25

Level 2
Jun 4, 2023 9:02:03 AM

Did you make a payment when you filed an extension? YES

Level 15
Jun 4, 2023 9:24:12 AM

Ok ... does the amount on schedule 3, line 10 reflect the acutual  extension payment you made?  

Level 2
Jun 4, 2023 10:26:12 AM

does the amount on schedule 3, line 10 reflect the actual  extension payment you made? NO. That's what confuses me.

Level 15
Jun 4, 2023 11:02:49 AM

Ok ... so when you completed the interview the amount paid with the extension was presented and it was up to you to make sure the amount was correct.  The program would have carried forward the amount estimated earlier expecting it to be paid with the extension ... if the amount was not correct it was up to you to correct the figure before you filed.  This is a user entry error and not a program issue.  

 

Log back into the return ... scroll down and click on ADD A STATE to let you back in then check what was in the program ... 

 

To enter, change or delete a payment made with an extension request (Federal, State, Local) -

  • Click on Federal Taxes (Personal using Home and Business)
  • Click on Deductions and Credits
  • Click on I'll choose what I work on (if shown)
  • Scroll down to Estimates and Other Taxes Paid
  • On Income Taxes Paid, click on the start or update button

On the next screen select the type of extension payment made and click on the start or update button

                                                                                                                                     
Or enter federal extension payment in the Search box located in the upper right of the program screen. Click on Jump to federal extension payment


The federal extension payment will be shown on Schedule 3 Line 10. The amount from Schedule 3 Part II Line 15 flows to Form 1040 Line 31.

 

Level 2
Jun 4, 2023 11:08:18 AM

Thanks. Do you work for Intuit?

Level 15
Jun 4, 2023 11:10:47 AM

No I do not.