I will try calling the IRS. I did not receive a notice. Is there a way to check online if a notice was sent out?
For the discrepancy, the possibilities are:
A) TurboTax made a mistake in computing the value, and the IRS caught it
B) TurboTax correctly computed the value, but made a mistake in reporting it, and the IRS caught it
C) the IRS made a mistake taking a number from the reported return
I believe it should be easy to confirm which scenario it is, and seems to me it behooves Intuit to validate that the mistake is not in TurboTax (or to tell me how to validate). In fact, it may be as easy as someone confirming which tax transcript lines should copy values from which part of the return.
Specifically, from the tax transcript:
28% RATE GAIN:...........................................................$0.00
UNRECAPTURED SECT: 1250 GAIN:............................................$0.00
SCH D 15% TAX CMPTR:.................................................(CG * 0.15)
The TurboTax Schedule D Worksheet shows this:
11.a. Enter the amount from Schedule D, line 18 = 0
11.b. Enter the amount from Schedule D, line 9 = U
31. Multiply line 30 by 15% = ((CG-U) * 0.15)
where U = unrecaptured section 1250 amount (which is NOT 0) and CG = capital gains amount. The final capital gains calculation in the tax transcript also is consistent with using "CG" instead of "CG-U". I verified that in the filed return, Schedule D Line 19 shows the value "U".
I can easily compute by hand that if you use "Unrecaptured 1250 = 0" you get the tax owed number the IRS reports in the transcript, and if you use "Unrecaptured 1250 = U", you get the tax owed number computed by TurboTax. The difference between those two numbers is what the IRS refunded.
Thank you!
