Received IRS Notice CP23

[cos10za]

Notice CP23 listed a difference between tax payments made and what was owed. After looking at the 1040 on TT, line 31 lists an amount of $2503, which is a credit. Line 31 states this amount is from Schedule 3. On Part II (Other Payments and Refundable Credits) of Schedule 3 this amount is listed on line 10 "Amount paid with request for extension to file". Where did this amount come from? I did not file for an extension, and looking through the Easy Step interview for File an extension, the button says "Start" which means I didn't work on this, otherwise the button would say "Update". So how do I correct this in TT? And do I have to file an amended return?

[Critter-3]

If you did not make a payment with the extension then the IRS caught the error on the return so you don't need to do anything but agree that the figure on Sch 3 line 10 was incorrect.  

As to how that amount ends up on that line is due to a user entry in that section  OR  if an extension was filed thru the TT system and there was an estimated balance due the program assumes you paid the amount when filing the extension so if you did not make a payment then you needed to adjust the amount paid when asked.

You can open the return back up and review that section of the interview but be carefull not to make any changes unless you use the amendment process for another situation as this one doesn't need to be corrected. 

[cos10za]

Thanks. I know I am sending money to the IRS...PLUS INTEREST.

But as I previously stated, I did not file for an extension nor did I go through that step in TT. So my question still, is why/how that amount was entered on Sch 3 line 10?

After using TT for over 20 years, I'm considering other options as this error negates the ease of use.

[Critter-3]

Well the program doesn't do this on it's own and if you had carefully reviewed the return before you filed it you may have caught such a large error before you filed.  When you used a DIY program you are resposible for all entries on the return.  

If you believe the program made an error then you can put in for an accuracy guarantee claim ...

What is the TurboTax 100% Accurate Calculation Guarantee?

SOLVED•by TurboTax•397•Updated July 27, 2021

In plain English, if you pay an IRS or state penalty or interest because of a TurboTax calculation error, we'll pay you the penalty and interest.

For complete details, see our Intuit Software End User License Agreement (look about 2/3 of the way down the page, under the heading TurboTax Accurate Calculation Guarantee).

You can read the fine print at the Intuit Software End User License Agreement for TurboTax Desktop Software or the End User License Agreement for TurboTax Online. Enter accurate calculation in the Find feature in your browser (usually listed under Edit) to go to it quickly.

Related Information:

• I got a letter or notice from the IRS
• How do I submit a claim under the TurboTax 100% Accurate Calculation Guarantee or 100% Accurate, Exp...
• What documents do I need to submit a claim under the TurboTax 100% Accurate Calculation Guarantee?
• What is the TurboTax Audit Support Guarantee?
• What's the difference between the Audit Support Guarantee and Audit Defense?

[cos10za]

Thanks for all the info. You are correct, I should have reviewed every form TT generated. Going forward, I will pay an accountant for that.