Form 8960 error saga

[RobertMaxB]

UPDATE: Even worse (?) I got my refund approved, and IRS is sending the extra $ (incorrectly I think) for Form 8960, that IRS calculated differently than TT.  So- I'm sticking that $ in savings account, sitting on it.  Sigh.  Well, at least my money is coming. 

[CG5402]

As I mentioned, I got a second refund and I sent the check back to the IRS with a page from the tax transcript and a long letter explaining how the IRS computer made a calculation mistake.  If the IRS further decides that I am still due this money, then they can send a further detailed explanation.  But I do not want a second refund check I believe was issued in error.  My initial refund was carried over to my 2023 taxes and that part was correct.

[RobertMaxB]

Right.  The "Form 8960 error" is not over- some of us at least are (incorrectly) getting a refund, from the IRS tax transcript vs. TT calcs on 8960.  And from IRS's own spreadsheet of "known errors".  The question is- what do people do, when they get incorrect refunds.

Technically, the IRS says "don't take it".  So, great, I get to call the IRS and explain that they are wrong.  I'm a crazy busy person so this is not awesome.

IRS Web page says:

Not Entitled to Refund Received

If you receive a refund to which you're not entitled, or for an amount that's more than you expected, don't cash the check. For a direct deposit that was greater than expected, immediately contact the IRS at [phone number removed] and your bank or financial institution. If you receive a notice from the IRS explaining an adjustment to a refund amount, you should do as instructed in the notice. For information about returning an erroneous refund, see Topic No. 161.

Which says-

When the amount of the refund (paper check or direct deposit) is different than what was expected, indicating the IRS changed the amount, a notice explaining the adjustment is mailed to your address of record. Please review the information in the notice to determine if the change to the refund is correct. A toll-free telephone number is included on the notice in case you require further assistance.

So I get to wait for the mail from IRS, then contact the IRS.  All over like $100 (sigh).

[CG5402]

Problem was I got the check and NO explanation what it was for.  I didn't know if it was for recent taxes or a back year.  So I called the IRS and the agent went through it all with me and told me to send the check back, include a letter and the transcript page.  I sent it back certified.

[SForrestLO]

We are aware of the Federal return rejection Reject Code F8960-019-04 Processing error Form 8960, Net Investment Income Tax. The Business rules need to be modified to reflect the updates to the instructions for form 8960. The IRS will update the Business rules by mid-March 2023. 

Please see IRS Known Issues and Solutions for updates.
 

[RobertMaxB]

Hi, Ms. Forrest- I realize the current IRS "known issues" spreadsheet says projected resolution is March 19, 2023, but-- today is April 11.  Clearly IRS hasn't fixed it.

[tiredoftaxes2023]

Update: Now the known issues spreadsheet has 2 tabs. A current issues tab, and a resolved tab. The 8960 issue is now "resolved" as of 4/11/23 on that file. However...when I login to the irs and pull my transcript, account history, all of that, that issue being resolved did not at all adjust how my "Total Tax Liability TP Figures Per Computer" was being calculated. So the fixing of this issue by the IRS did not result in any actual change to the ongoing issue where Turbo Tax tells you one refund amount and then the IRS tells you, you owe instead.

Would love to have Turbo Tax actually reach out to those affected and be willing to help us. You have our returns, and we have our transcripts. Couldn't you compare the two and figure out what went wrong between your two systems? We paid for a service, and in my view, I didn't receive accurate financial reporting of that service.

[CarissaM]

In order to receive an update, it would be best to click here and give us a call. @tiredoftaxes2023 

[tiredoftaxes2023]

I requested the refund for the turbotax product and today received some cookie cutter reply from Turbotax "Unfortunately, we are unable to honor your refund request." However, they then said they have a 100% Accurate Calculation Guarantee. But when you go to that link, it says you can only qualify if you owe penalties. Well, when I didn't get my refund that Turbotax initially calculated, I contacted the IRS myself and prior to April 15th and found out I owe. I then paid the amount the IRS said to AVOID the penalty. And since I did that I don't qualify for the 100% Accurate Calculation Guarantee. "Come to Turbotax, and DON'T DO your taxes.". They were right afterall. They don't do your taxes (correctly) and leave you in the dust when they miscalculate your refund/amount due. I learned a lot for this experience in general. 1) TurbtoTax doesn't care about you nor the time you have spent trying to file/re-file etc. and 2) TurboTax pretends like they stand behind their product with a guarantee but when it comes down to it, you won't get a refund of the service you paid for. Even if that service is completely inaccurate.