Withholding Claim Could Not Be Verified - Kentucky

[tkazior]

I filed electronically with TurboTax Home & Business. Seems like Kentucky Department of Revenue didn't receive forms which verify my withholding. What's going on? Text of letter:

"Subject:  2020 Individual Income Tax Adjustment

Your 2020 Kentucky Individual Income Tax Return was adjusted to $0.00. This adjustment was made for the following reason(s):

Withholding claimed could not be verified. Forms W-2, 1099, or PTE-WH or other supporting statements must be submitted to verify withholding claimed.

Per KRS 131.110, you have the right to protest an adjustment made by the Department of Revenue. The protest must be in writing, stating reason(s) for the protest, and submitted within sixty (60) days of the original adjustment. Include all documentation necessary to support your protest. "

Any help is appreciated. Thanks in advance.

[tkazior]

In this case the Kentucky Department of Revenue did not receive several 1099-R forms. Does TurboTax not forward those forms to the State when filing electronically?

[BillM223]

Yes, it is normal for TurboTax to attached the XML version of such forms to your return (XML is a data format used to e-file returns, rather than sending the IRS and the states PDF forms).

I would contact the TurboTax Audit Support Center (they also help with responses to letters from taxing agencies), and ask them if they could confirm that your XML e-filed return had the W-2s and 1099-Rs attached.