Penalty BY IRS

[dcsharkey]

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.

[LenaH]

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.