I just received a CP2000 where IRS states that the tax withheld reported in my return is not matching their records. When reviewing my 2018 tax return i noticed that TurboTax added a backup withholding to both state and federal return. I can't find any backup withholding from any of the documents i imported or any data i entered. How can i figure out where TurboTax 2018 got this information?
Thanks, Chris
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TurboTax does not receive any information from the IRS or your state after your return was filed, so no one at TurboTax knows about a letter you received from the IRS or the state.
I GOT A LETTER FROM THE IRS
(what the letters from the IRS mean)
https://ttlc.intuit.com/questions/3605673-i-got-a-letter-or-notice-from-the-irs
I AM BEING AUDITED
If you purchased Audit Defense:
https://ttlc.intuit.com/questions/2924451-i-bought-max-or-audit-defense-and-now-i-m-being-audited
AUDIT SUPPORT
TurboTax has a special phone number for help with IRS/state tax letters, which will be easier than going through regular Customer Support. At the page below, click on the blue button that says "Get Help from TurboTax Support". Then it will ask you what tax year is your letter. Then it will ask you what the letter concerns. Then it will show you the phone number during posted business hours.
https://support.turbotax.intuit.com/irs-notice/audit-support/
You can also download the amendment program if you don't already have the downloaded program and then switch to the forms mode to data source where that amount came from.
https://ttlc.intuit.com/community/amending/help/how-do-i-amend-a-return-in-turbotax/00/27579
This is one of those "What types of forms are showing withholding? " questions.
Usually, any withholding is a number you would have had to enter yourself in the wrong field when you went thru the interview.
1) Certainly, there could have been a few foul-ups for downloaded forms. For example, if you downloaded a tax form, and the "provider" messed up the tax file layout, then the wrong numbers could get in certain fields...but, you were supposed to confirm all the numbers...on ANY import yourself because TTX can't know a provider improperly formatted certain numbers.
2) For a several years running, Los Angeles public service 1099-R forms were mis-numbered in the later box numbers....and users had to make sure they put them in the "proper" boxes in the 1099-R form in TurboTax. That was Govt screwup in not using the proper IRA approved 1099-R forms. (Don't know if, or when they ever fixed that).
3) Maybe you used the "picture of W-2" procedure to enter your W-2 form that year. It was then up to You to check that all the boxes were entered properly (I would never trust such a procedure)
4) Sometimes people who exercised employer's stock options will double-enter their withholding, putting the withholding in with their 1099-B/8949 entries for the exercise and sale......when it's already shown on their year-end W-2. TTX can't know that you did that.
5) And, while not an actual "income tax" withholding issue, some people overstate their SS withholding by not noticing that they assigned BOTH their own W-2 and their spouse's W-2 as belonging to only one of them...resulting in an improper SS refund for any total amount in box 4 that is over 7979.40 (for 2018). That is a user-entered error that TTX can't know you've done. TTX always presents a page after the entry of a W-2, showing the W-2 and who it belongs to...one for Mary and one for John....if both showed for Mary or both for John, you should have corrected that.
6) there's also an entry section on the Deductions & Credits page where you can enter any "Withholding not already entered on a W-2 or 1099 " You might have double entered some withholding there.
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