The IRS sent a letter adjusting my tax year 2021 Credit for Prior Year Minimum Tax (Form 8801). Their message says "Some credits are limited to the difference between your tax before credits and tentative minimum tax from Form 6251, Alternative Minimum Tax - Individuals. You either didn't apply the limitation to your credit or it was applied incorrectly." AMT and the credit for prior year AMT are both calculated automatically by TurboTax, but I manually followed the instructions for Forms 6251 and 8801 to double check and couldn't find any place where TT deviated from the IRS instructions. I also requested transcripts of my 2020 and 2021 returns and verified that the numbers the IRS has both years match what my tax returns have -- except for the final result calculating the credit on Form 8801. Unfortunately, the IRS transcripts don't cover every line and don't provide any detail on their 8801 calculations.
I have two questions:
1) Does TT have any information about a problem with Form 8801 (or 6251)? I did not finalize and e-file until after the forms were officially available (late March), and I've updated regularly and see no change in the numbers. Plus, as I said, I manually checked and TT seemed to be doing everything correctly.
2) Assuming there is no correction from TT, what is the best way to modify my return for tax year 2022 when it comes to the credit carryover from this year? Since the IRS altered the 2021 credit, the amount carried over for next year will also need to be different.
I can send a copy of my tax file if that would help. Thank you.
