I received a notice from the IRS - a notification of error that has turned out to be related to Refundable Child Tax Credits that I did NOT realize had been paid directly to my bank account ($1k over 6 monthly payments at end of '21). I did NOT receive, nor did my wife, receive any IRS Letter 6419's for any of the payments.
The IRS wants me to re-pay that $1k plus interest since I did not declare it in my 1040 return for '21. Since I have now found these direct paymens and agree they were paid, what do I do? Do I
1) Fix the error in my '21 1040 tax return in Turbo Tax and make the $1k + interest pmt inside of Turbo Tax.??
2) Pay the IRS directly via the EIT (IRS account)? But, then what do I do in Turbotax to make the return match and reflect the fixes? Is it important to fix my (submitted) return so the correct amount is retained in the '21 tax file? Is it important to do this before I start my '22 return?
Thanks!
