Ok, let's cut to the chase. I also received the mysterious IRS letter declaring that I had $230 deferred from my SE tax. I also did not authorize making a deferral of "employer portion of FICA", as I am self employed and have no employees. (I seriously doubt that the option was explained and made clear, it it was offered at all.) The current updates of the package do not operate the same as they did in April when I filed.
However, it is clear to me that Intuit and TurboTax have made a serious error in calculation of my taxes, specifically regarding SE deferral. Please note the following:
1. I filed my taxes in April. I save the return as it was filed, both in .pdf format and the native TT .tax2020 format.
2. Line 12e of Schedule 3, as filed, reads $632.
3. As of 08/27/2021, after software update Line 12e of Schedule 3, reads, $0. (ie no deferral calculated, same .tax2020 file). Apparently I did not request deferral after all!
4. Furthermore, while my letter from the IRS states that my deferral was for $230. Nowhere in my return is there line that contains a value of $230. This part of the mystery is truly confusing as the amounts do not correspond to anything on my return, regardless of whether I "elected" for deferral or not.
Regardless, it is clear that TT has changed their software to operated diferrently when calculating deferrals for SE taxes. The result is that my tax estimate for 2021 is incorrect, and other parts of the return are also incorrect. And I still have a pending expectation from the IRS that I will "pay the deferred amount".
I would like Intuit to acknowledge their error and acknowedge that they have not done or said anything to advise users who have been mislead by their errors.
I would also like guidance as to how I should respond. Do I send the IRS the ($230) amount stipulated in their letter, or should it be that the amount on Line 12e of Schedule 3 of my filed return ($632)? Or, do I submit an amended return, recalculate my outstanding SE vouchers, and wait for a response? Or just amend the return and ignore the letter?
I have been relying on TT for Many years. Can I trust them going forward?
