Can I check AMT carryover amount from 10 yrs ago? It is sizable and believe to be an error. In 2018 getting sizable AMT credit and concerned it is inaccurate.

[Mike9241]

Online Turbotax only retains copies for 6 years. so if you didn't save a copy offline only the IRS apparently has a copy.  I'm not sure how this is because the IRS supposedly only saves returns for 6 years.  Perhaps it caught the error but because it didn't affect returns at that time, it stored these returns as sort of a special case in case a taxpayer ever tried to take credit for the excess AMT. OPs have posted that TT is denying accuracy claims (evidently taking the position it was user error or that users, because they no longer have the program or return. can't prove the error was only due to a calculation error by TT) taxpayer and that lawyers they say they contacted have declined to take up a class action case. In any case, TT would only be liable for the penalties and interest. you don't have many options at this point because telling the IRS it was a TT calc error won't get you anywhere with it. the IRS probably has given you a deadline to pay. after that with nonpayment, it can levy your salary, put liens on your assets, etc.  

[Maryfrances10]

@rickperk42   - did you get any helpful advice from your attorney? I'm still interested in pursuing legal remedy 

[Mlavoie4]

Turbotax Audit help helped me with the IRS, The IRS waived the penalties on my amount due. Im not working with any other lawyers.

[dbadolato]

So add me to the pile.  Same situation - started when I paid AMT (correctly) in 2011, the following year, in 2012 the WRONG amount was carried forward.  Now I'm being audited.  Windfall for the IRS. 

Also, I want to point out to you all to CHECK the number that the IRS comes back to you as owing for the tax years in question.  In the case where you take the AMT credit you cannot take the standard deduction.  SO when you get the audit letter from the IRS make sure you change BACK to he standard deduction to calculate the true tax you owed for that year.   (If your itemized taxes were greater than the standard deduction that year then this doesn't apply to you).

For instance, in my case the itemized deduction was about 18k for the year I'm being audited, so when the IRS calculated what we owed they STILL used that itemized deduction instead of giving me the larger standard deduction of 24k.   When i re-do the taxes from that year using the standard deduction i find that i would owe the IRS about $3000 LESS than what they are telling me.

I think it's kind of crappy of the IRS to not switch it back to the standard deduction in their calculations of what was truly owed.  I would hope that they at least understand the deductions well enough to know that is how it works.

I have not spoken to TT or IRS regarding this yet.  All that fun lies before me, any advice would be welcom.

I assumed that TT would not pay the taxes but I'm shocked to find out that they won't cover the fees/interest etc.  It's so obviously their error.  Whether the error was in verbiage where they 'guided' a user to enter a number or they programmatically copied over the wrong number, the blame is on them.  And from what i can tell reading here it started in 2009 and went as far forward as 2015!  

What other tax tools have folks switched too?  I'm having a hard time finding one I like.

Thanks!

Donna

[rgeis]

has anyone contacted a lawyer? results?

[wmkolve]

The exact same thing happened to us. We have had to pay over $20,000 to the IRS in the last two years because of an AMT carryover through TT. Very interested in joining in on a class action, please let me know if you pursue one.

[gotosimon]

I'm being audited for 2019 for the same reason.  How are people handling this now?

[rickperk42]

No help from attorneys or from IRS.  I had no luck with TT as obviously the said it was user error and won't admit any wrong doing.  End up paying the whole bill due, penalty and interest.  Hopefully it will be the end of it.  Not really what I wanted to do but it is what I did.  I think there are surely enough people affected but I don't have the time or finances to pursue a class action.  

[Mlavoie4]

Concluded my audit... requested  waiver if penalty due to TT error... IRS granted it. Also interest should start 7.15 nit 4.15

[pam-mora]

Hi everyone.

I have been dealing with this same issue since last year when I discovered the error in my 2018 and 2019 returns.  I submitted a Turbo Tax Accuracy Guarantee claim for the IRS tax penalty and the claim was rejected because I cannot prove I did not manually enter the carryforward in my 2012 return.  To prove this, I need to have access to Turbo Tax Premier 2012 which I no longer have.  Turbo Tax will not give me a copy either even though I have proof of purchase.  Does anyone have access to or know where I can get a copy of this software?

Any help is greatly appreciated!

[Maryfrances10]

I have tried to open a class action with 2 law firms. They both said they felt it was a legitimate claim, but I don't think they thought it was a slam dunk so they declined.   The arbitration clause that TT has in all of their small print is the primary reason.  

[Maryfrances10]

Good to know Donna!! 

I have been wondering that if TT made the one huge error perhaps there are others - possibly, to your point, some that work in my favor.  It is such a long trail of issues going back years, with software many can't access, it will be impossible to prove what the reality and correct numbers are. 

WHICH BRINGS ME TO MY NEXT POINT....  Offer in Compromise.  most people don't know there are 2 ways to request this.  most common says I don't have the means to pay this.  but the lesser known is "OIC doubt to Liability". What you are stating here about them not adjusting your numbers, is an EXCELLENT point to prove doubt of your liability.  This process reads that you aren't saying you don't owe or that there wasn't an error, you are saying there is doubt you owe what they say you owe.  in our case, the doubt comes from TT making so many errors and the confusing nature of AMT.  In your case you can say,.  "look you didn't even adjust xyz, so what else did you miss, or TT miss... I have doubt as to what I owe and for good reason."   under this premise I am going to offer to split the difference and pay them 50% of what they say I owe and drop all penalties and interest due to it being my preparers fault and not my own.  I haven't done it yet, but I'm laying the groundwork and will be sending my offer for a lower amount.  it doesn't eliminate it, but it helps.  look into the doubt of liability OIC everyone.  Good luck!

[Maryfrances10]

read up on "IRS OIC doubt to liability."

[bal4833]

I am late to this party and have not been contacted by the IRS but after many years of simply trusting TT I decided to look into my credit.  I did pay AMT between 2007 and 20012.  A total of a little over $17k over 6 years.  Based on the pdf I made of my 2007 return there was no Form 8801 filed with the return which makes sense to me based on the fact that it was the first year I paid AMT.  My 2008 pdf does include a Form 88001.  Line 19 is supposed to pull a value from the 2007 8801. Since there was no 8801 that year it should have been zero on the 2008.  Instead TT appears to have pulled my 2007 AMT income from Form 6251 line 28.  I only paid $597 in AMT in 2007, so I guess I should have notice this huge difference.  I am learning not to trust TT.

So over the next 5 years (2008-2012) I continue to pay AMT and the credit amount carried forward only increases by $4.  In 2013 I claim a $2408 credit and the amount carried forward decreased by that amount.  That part makes sense.  In 2014 I claim a $170 credit, but my carried forward amount increases by 2.5 times the 2013 amount.  The 2014 Form 8801 Line 16 is supposed to pull 2013 Form 6251 Line 35.  My 2013 Form 6251 Line 35 is zero.  That is because I stopped paying AMT.  TT pulled $276k from out of the blue and put it on 2014 8801 Line 16 which made my carryover credit huge.  

Over the ensuing years 2015 to 2021 I have an average credit of $4308.  The sum of credits for years 2018-2021 is $26566.  Near as I can tell I have been underpaying at least since 2015.

Now I need to figure out how to stop taking this credit.  Hopefully I can just delete 8801 from my return going forward.

[bal4833]

Mary,

I have pdf's of all my returns for which this AMT carryover is an issue.