I received a notice from the IRS that I under-reported the 1099R amount and now owe additional taxes and interest. The 1099R is entered correctly and full distribution amount is listed and stated on line 4a. That amount included the RMD amount plus additional amount. I answered the 1099R questions in TT and stated the RMD amount that was part of the distribution amount; but when TT calculated and prepared the return, it had line 4a correct but line 4b (taxable amount) was reduced via the RMD amount. So, there is a difference there and IRS claims under-reported with additional tax and interest due. Why would TT have different amounts on line 4a and line 4b?? Why did it only report RMD as taxable (4b) and not full amount (4a)?? How do I reject the IRS claim or do I really owe due to TT error?
