Deductions & credits


@Allan712 wrote:

I used Turbo Tax Business as they have the option to file for the estate.


It appears, then, as if you filed a 1041, but you made an error in terms of reporting the correct figures from the sale (incorrect basis or sales price, most likely, if you deducted the mortgage payoff).

 

You need to locate the 1041 (or get a copy from the IRS) and make the corrections (or consult with a local tax professional). You also need to respond to the notice from the IRS in a timely manner or they will simply make a final tax assessment.