Turboxtax miscalculated my taxes and missed that I was supposed to pay a penalty. Now I got a notice from the IRS asking me to pay the balance. How do we go from here?

[xmasbaby0]

What do you believe TT calculated incorrectly---provide some details---we cannot see your tax return.

TurboTax provides do-it-yourself tax software.  TurboTax guarantees the calculations done by its software.   The information entered into that software is data entered by you, the user.   TurboTax cannot and does not check that information against any outside sources, so TT cannot know if you entered your information completely or correctly.   It is up to you to enter all of your information correctly and completely, and to check your tax return before you file it.  If you forget to enter some income, or enter it incorrectly, enter it in the wrong place, etc. then you may end up owing additional tax to the IRS and/or state.  TurboTax does not pay the additional tax you owe.   If TurboTax’s calculations were incorrect, and you owe penalties and/or interest, then TT will pay the penalties and interest.  The tax due is always owed by you, and must be paid by you.

If you need to enter a claim for the accuracy guarantee:

https://ttlc.intuit.com/turbotax-support/en-us/help-article/intuit-account-billing/submit-claim-turb...

[muneebshahz]

I had help from a TurboTax consultant on my filing who reviewed my filing. I was filing late and owed taxes, which means I was also supposed to pay interest and penalties. The software should have easily calculated this since I was filing after my due date. The tax consultant who reviewed my filing should also have caught this. 

[xmasbaby0]

Do you mean you missed the filing deadline and filed late----and paid your tax due late?   TurboTax never calculates the late filing penalty or interest.   That is calculated by the IRS when they receive your tax return and your payment for the amount due as shown on the Form 1040.  Then the IRS bills you for the penalty and interest.

[Opus 17]

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@muneebshahz wrote:

I had help from a TurboTax consultant on my filing who reviewed my filing. I was filing late and owed taxes, which means I was also supposed to pay interest and penalties. The software should have easily calculated this since I was filing after my due date. The tax consultant who reviewed my filing should also have caught this. 

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If you filed and paid late, you would owe a penalty.  While your consultant should have mentioned it, I'm not sure you have an actionable issue.  You always owe your own correct tax, plus in this case, your own correct penalty.  If the consultant had warned you, and you included the penalty form and estimated penalty with your return, you would have avoided most of the interest you might now be being charged, but the penalty would remain.  

If you believe Turbotax should cover the extra interest you are being charged as a result of not paying the penalty up front, you can file a claim here.

https://ttlc.intuit.com/turbotax-support/en-us/help-article/intuit-account-billing/submit-claim-turb...

[Mike9241]

Turbotax does not compute late payment penalties and interest

[muneebshahz]

The Turbotax consultant did not warn me. For a Turbotax to claim to be so sophisticated, one would assume it can calculate a penalty, or even warn that I might owe more since I am filing late. Probably going to be my last time using this product 

[xmasbaby0]

The penalty and interest are not calculated until the IRS receives the tax return and the payment due as shown on the Form 1040.  TurboTax has no way to know when the IRS will receive/process your late mailed return nor does TT ever know if you paid your tax due--even the amount on line 37.   

[muneebshahz]

how is that possible? I paid whatever is due using TurboTax. That is the last step of my return. So it would easily know that I am paying late and I probably will be penalized 

[taxlady28]

IRS calculates the penalty and lets you know how much you owe.  TurboTax will not know what day your tax return gets to the IRS.   Just pay the penalty that the IRS calculated.

[muneebshahz]

If I use Turbo Tax to sending my return in October and I owe taxes, are you saying TurboTax is not able to figure out that I may owe a penalty? 

[xmasbaby0]

We are telling you that TurboTax does not calculate your interest or penalty owed for you.   It is only calculated by the IRS when they receive your return and when they receive your payment for the amount on line 37 of your Form 1040.    TurboTax never knows when the IRS is going to receive your Form 1040 and TT never knows how, when or even if you paid your tax due.  The penalty and interest are not calculated until the IRS has your tax form, and your payment in hand----based on the date the IRS receives it.

[muneebshahz]

I am confused. How does TurboTax not know when I use Turbo Tax to make the payment for taxes due? 

[xmasbaby0]

TurboTax has no way to know if you wrote a bad check to the IRS, used an expired credit card, tried to pay with a credit card that was over limit,   etc. etc. etc.  TT flat out does not know if you paid your tax due.   

[muneebshahz]

What if I am using TT to pay the tax? I put my credit card details into TT and didn't send a cheque to IRS. The amount was deducted immediately 

The payment anyways doesn't matter. TT should be able to figure out I will most like be penalized, even before we get to payment. Are you saying TT cannot calculate this? Or that it can calculate it but choses not to?