Updating my prior post - the reality is we do all owe the actual tax to the Iowa Department of Revenue. What you can do is file a claim with TurboTax for the penalty that's been assessed. Here's the link: https://ttlc.intuit.com/community/charges-and-fees/help/how-do-i-submit-a-claim-under-the-turbotax-1...
I just completed the form, scanned the notice from IA and uploaded the documents. You'll get assigned a case # and an analyst will reach out with questions per the instructions. Process was super simple - the refund of the penalty should be fairly straightforward as none of us input the deduction, the software did.
