Penalty BY IRS

Forum|Forum|1 year ago
June 9, 2025
3 replies
23 views

Received a notice that the IRS says we underpaid the payments due and that with the penalties amounted to $999.04. Don't understand how this happened because the correct information was entered; therefore, is it a mistake made by TurboTax? Our Adjustable Gross Income was less than what IRS calculations were and so was the Taxable Income.

TurboTax Deluxe Online

LenaH

Alumni - Expert

Since we cannot see your return or the notice you received from the IRS, we are not sure of the reason for the adjustment. You will have to read the letter received and go through your tax return to determine why the AGI calculation was different.

The letter received should give you the detail needed to determine whether the changes made by the IRS are correct and whether you owe the calculated payment due. If you do not agree with the changes made, the letter will also provide instructions on what to do if you disagree with the notice.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

dcsharkeyAuthor

Level 2

I read the letter from the IRS and spent two hours on hold when I telephoned them to discuss why we were charged a penalty on our tax return. The letter received indicated that it had to do with our Social Security information provided in the return. They were unable to help -- simply said that if I felt it was in error I should send a letter to them with my backup documentation. I have checked our tax return and the information provided by the Social Security Administration to ensure that the data entered was accurate -- and it was. What I found completely upsetting was the page on TurboTax with a telephone number that says they are a phone call away if help is needed. I called the number and listened to recorded information that was of no help -- and found there is no way to actually talk to a person. The TurboTax promise of help if needed is not true.

SteamTrain

Level 15

@dcsharkey

Check your line 6b on your form 1040. It is likely that line should not be a zero.

There's been a number of folks this year, who either didn't answer a question, or accidentally/improperly answered Yes to a question about living in certain specific foreign countries during 2024. That question was part of the series of questions presented during the entry of the SSA-1099 form(s) in the software.

See an answer in this conversation to see a picture of the page where it asks about that:

https://ttlc.intuit.com/community/taxes/discussion/1040-sr-line-6b-is-in-error/00/3670585

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*