2021 Tax Return - IRS Letter claiming underpaid - Recovery Rebate Credit Error

[egoldrich]

I submitted my 2021 taxes using Turbotax and entered that per the 6475 letter we received $1,400. Since we were eligible to have received $2,800 Turbotax used the remaining $1,400 as a credit on taxes owed. Yesterday I received a letter from the IRS saying there was an error in the Recovery Rebate Credit and that we owe $1,400. No further explanation.

Have you seen that before? Is our best recourse to call the IRS? Aside from that, they agree with all other numbers.

Thanks

[ee-ea · Accepted solution]

https://www.irs.gov/newsroom/letters-about-third-round-of-economic-impact-payments-issued-important-...

[egoldrich · Accepted solution]

Thank you for that info. It turns out the critical missing piece of information was that a 6754 was sent to each tax payer regardless of how you file and how many accounts the money was deposited in, so using that letter was the cause of the problem. The only reliable source if you are married filing jointly is your bank statement. Since the other letter, which may have been sent, never arrived.