This happened to me on my 2020 tax return. I recorded a Form 1099-R in TurboTax (TT) Premier 2020, but the amount of federal tax shown there as withheld was not transferred to my federal 1040. Funny because the State income withheld as shown on that same Form 1099-R was shown on my 2020 Maryland income tax return, prepared with that same TT Premier 2020 program. I just trusted that TT would do this correctly and I filed the returns timely by the mid-April 2021 deadline. I was not aware of the error until I received a a Notice dated March 7, 2022 from the IRS Automated Underreporter (AUR) unit that I had under-reported my federal tax payments. I was shocked and could not figure out how this happened. But I looked at the return and had to agree with IRS that a large federal tax withheld had not made it onto my return. So a large federal income tax refund will be coming to me.
I recently spent two hours or so with two different tax experts at TT (Alexa for about an hour until the call got disconnected, then another hour with Anna); they both seemed to agree that there was an error in the TT program code that caused this problem. One of them said she would notify TT's IT department. This mistake caused me considerable worry and anxiety and has taken up a lot of my time. Now IRS AUR says they'll be sending me a new agreement to sign with just this overpayment of tax as the only item (they had sent others with unrelated errors made by AUR before but have corrected those). It will still take over three more months before I get the refund. I am very unhappy about this and I think TT should compensate people who experienced this programming error. My trust in the accuracy of TT software has decreased.
