Update to all who have helped me with this. I have learned my lesson and will efile from now on. I have been paper filing for 50 years and just never changed. I called the IRS number listed in the CP11 Notice and after 3 hours 6 minutes received no satisfactory explanation whatsoever. Here are excerpts from the letter I have now sent to IRS:
The phone menu did not have a topic that included the purpose of my call, leading to an extended time on hold until I could speak with someone who could address the issue. The result of the phone call was totally unsatisfactory. The explanation of the alleged error was contrary to the documents you furnished to us previously and the facts available to me. I was also informed (contrary to the specific wording in the Notice) that in order to preserve our appeal rights and have the change reversed we must write to you, as that could not be done over the phone. By this letter we are expressly requesting preservation of our appeal rights and reversal of the change.
My reasons for disagreeing with the change are as follows. The Notice states that you changed the amount shown on Schedule 2 of our tax return as additional tax from Schedule 8812 because we received advance Child Tax Credit payments and either didn’t reconcile them or made an error on Schedule 8812 in one of three areas: computation, reconciliation, or transfer from Part III to the tax return. A computation error or transfer error is unlikely as I used Turbo Tax to prepare the return. Nevertheless, I rechecked the computations and they are correct, and the transfer was properly made. That leaves a reconciliation error.
Although not clearly communicated to me on the phone call, it appears the supposed error is the result of your belief that we received other advance Child Tax Credit payments than we showed on Schedule 8812. Our Letters 6419 (copies enclosed) and our bank records show that we received a total combined amount of $1,500 that we deposited in our account, which is shown on Line 14f of Schedule 8812 (copy enclosed). Your phone representative stated, however, that we had previously received a payment by check dated March 2021 in the amount of $4,200 that included an advance Child Tax Credit payment. The only additional payment to us that I can find is the Economic Impact Payment of $4,200 we received and deposited in April 2021, confirmed by our Letters 6475 (copies enclosed). This is not an advance Child Tax Credit payment. I cannot locate any other advance Child Tax Credit payments other than the $1,500 shown on our Letters 6419 and reported on Schedule 8812. There was no additional tax in Part III of Schedule 8812.
