Recover tax over payment due to TurboTax Bug\Flaw

[mmucci66]

I discovered a problem with TurboTax when preparing my return for tax year 2018.   The problem was in the handling of 529 distributions and determining eligibility for the American Opportunity or Lifetime Learning Credits.   The specific problem and procedure to correct it is described here:

 https://ttlc.intuit.com/questions/4451709-why-is-the-529-distribution-from-my-1099-q-showing-up-as-t...

After discovering the problem, I reviewed my previous tax returns and found that as a result of this problem, I over payed my taxes for tax years 2017, 2016, 2014, and 2013.   I amended my returns for those years and was able to recover the over payments for 2017 and 2016.  However, my amended returns for 2014 and 2013 were disallowed because the original returns were filed more than 3 years ago (IRS limit).

What recourse do I have to recover the over payments for 2014 and 2013 either from the IRS or TurboTax?

[Kat]

@mmucci66Thank you for posting.  I'm sharing your post with TurboTax Moderators.  I would expect that you will hear from one of them by email sometime tomorrow.  Keep in mind that the office is on the west coast.  

Please check your TurboTax account to ensure that your email address is current.  The TurboTax FAQ below will instruct you on updating/confirming your account information.

https://ttlc.intuit.com/questions/1900724-how-do-i-update-my-turbotax-account-information

[mmucci66]

Haven't heard anything, so far.

Is there someone I can contact directly?

[Kat]

You can always contact TurboTax Customer Support, but I feel like your issue, due to its complexity, needs a higher up.  Let me post this again for Moderators.  Sorry you haven't heard yet!

[ErickaY]

Hello,

We are currently investigating this. I will send an email tomorrow morning regarding the actions we can take. 

Thank you for reaching out. 

[mmucci66]

Well, I contacted TurboTax Customer Support and was told that I should submit a request under the Tax Accuracy Guarantee.   I did so and it was denied.  The reason cited was that my case "does not fit the criteria for our Tax Accuracy Guarantee".  For the Tax Accuracy Guarantee "you must have received a notice for additional taxes, plus penalties and interest for the years in question".   So, apparently over payment of taxes due to a flaw/bug in the software is my fault and TurboTax takes no responsibility.

Doesn't seem like much of a guarantee or confidence in the quality of the software.

Very disappointing!

[NCperson]

Hold on!!!!!

If you were not harmed , why would you expect ANY product to compensate you?

The guarantee pays for penalties / interest but there are none in this case

Had you not used the software and prepared the return manually, you would have paid the taxes correctly since your manual approach would not have been affected by the bug

Help me understand why you believe TT owes you money ???? How were you harmed by using their software????

[mmucci66]

Yes, as described in the original post, I was harmed.  Overpayment of taxes due to a flaw or bug in the software constitutes harm.

[NCperson]

....which the IRS is going to compensate you for in the form of a refund... , so why would you expect TT to compensate you as well?

[tagteam]

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@mmucci66 wrote:

Very disappointing!

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That disappointment is not limited to this particular software, though. Virtually all software is licensed, by the terms of which licensees accept the software "AS IS" with all faults; all warranties are disclaimed.

There is one consumer-level tax product that offers a guarantee that users will not overpay on their actual tax liability but with one huge catch; users need to file a claim within 60 days from the date they e-file (which renders that guarantee almost worthless).

Moreover, California law governs the agreement between you and TurboTax and the general statute of limitations for breach of contract/warranty is 4 years; any claim is pretty much outside the statute with respect to 2013 and 2014, regardless.