Received Notice of Deficiency: Standard Deduction subtracted from Itemized Deduction?

[Mike202411]

I received a notice of Deficiency after almost a year and the correction I see is that they are subtracting Standard deduction from Itemized deduction resulting in me owing them back.

I filed using Itemized deduction on my 2022 tax filing like I always do using Turbo Tax in the amount of $52,000. Received form 4549(Report of Income Tax Examination Changes) and it shows:

1. Adjustments to Income
    a. Itemized Deductions = 52,000

    b. Standard Deductions = (25,900)

2. Total adjustments = $26,100

.. and so on with other calculations which are the same

So why are they subtracting standard from Itemized? Usually the selection option is one or the other at the time of filing and you go with the higher amount but never saw this method. Can someone please explain. Thank You!

[Opus 17]

That looks like they are giving you the standard deduction and disallowing your itemized deductions.

Did you get any previous letters asking for proof of your itemized deductions?  If you failed to send in proof or it was not accepted, they would remove them.   Did you claim any deductions that are not supported by documentation?  (For example, you claimed mortgage interest but did not get a 1098, or you claimed charity donations more than $5000 and did not include form 8283 and a signed appraisal.)  Did you fail to include a schedule A showing the details of your itemized deduction?  (This should be impossible with Turbotax, but maybe you filed by mail and left out the form or maybe you used other software.)

Ultimately you need to call the IRS and ask them what they want.

[rjs]

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@Mike202411 wrote:

the correction I see is that they are subtracting Standard deduction from Itemized deduction

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They are not subtracting the standard deduction from your itemized deductions. They are subtracting the total adjustments of $26,100 from your itemized deductions, leaving you with the standard deduction. As Opus 17 said, they are disallowing some or all of your itemized deductions, with the result that your itemized deductions are now less than the standard deduction. They are adjusting your tax return to use the standard deduction instead of itemized deductions. This notice, or a previous notice, would tell you what itemized deductions they are disallowing.

This would not be the first notice that you received. Did you receive earlier notices that you did not respond to?