topic Change to 2018 Schedule D form 1040 in Get your taxes done using TurboTax

Change to 2018 Schedule D form 1040

johnbosphl — Wed, 24 Jul 2019 18:12:00 GMT

I received an IRS notice CP11 today recalculating my tax bill, showing I owe an additional $1000+ in taxes plus minor interst charges, even though my taxable income was the same. I filed my return on April 15 via mail, using a downloaded Turbotax Premier software, printing out the forms I filed with the IRS, keeping a copy of the form for myself

Now when I go into Turbotax (after the usual software upgrades), the tax calculation is different, agreeing with the IRS numbers on form CP11, rather than the numbers I filed on April 15. My tax was calculated, on the tax smart worksheet from the schedule D Tax worksheet.

It is my understanding that TurboTax guarantees the accuracy of its calculations. Can someone familiar with these calculations and revisions of them help me understand what's happening?

Thanks

Re: Change to 2018 Schedule D form 1040

DoninGA — Wed, 24 Jul 2019 18:29:17 GMT

You may have been affected by the IRS Error in Tax Calculation in Schedule D Tax Worksheet.

See this IRS website for information - https://www.irs.gov/forms-pubs/error-in-tax-calculation-in-schedule-d-tax-worksheet-form-1040

Re: Change to 2018 Schedule D form 1040

johnbosphl — Thu, 25 Jul 2019 18:15:37 GMT

Thanks - -that seems to be the explanation. I seem to fall into the "potentially impacted" category.

But then the next logical question is how to handle the letter. The return was personally prepared by me, using the IRS instructions as of April 15, 2019. A month later, we learn that the instructions and worksheet were in error and the cost to me is in excess of $1000, if the new worksheet is used. That just doesn't seem fair.

Any suggestions or alternatives? Turbotax appropriately used the IRS worksheet at the time, so it doesn't seem they are at fault. The IRS notice says simply "more information will be provided later."

Re: Change to 2018 Schedule D form 1040

DoninGA — Thu, 25 Jul 2019 19:38:52 GMT

Since you were affected by the IRS error it would be best to contact the IRS to find out what your options are at this time. Although if you do owe taxes based on corrected worksheet you should not have to pay any penalties or interest.

Call the IRS: 1-800-829-1040 hours 7 AM - 7 PM local time Monday-Friday
When calling the IRS do NOT choose the first option re: "Refund", or it will send you to an automated phone line.
So after first choosing your language, then do NOT choose Option 1 (refund info). Choose option 2 for "personal income tax" instead.
Then press 1 for "form, tax history, or payment".
Then press 3 "for all other questions."
Then press 2 "for all other questions."
- When it asks you to enter your SSN or EIN to access your account information, don't enter anything.
- After it asks twice, you will get another menu.
Then press 2 for personal or individual tax questions.
It should then transfer you to an agent.