Dear TurboTax Support / Audit Assistance Team,
I am writing to request a refund for penalties and interest I incurred due to what appears to be a calculation error in the TurboTax software regarding my First-Time Homebuyer Credit repayment.
I originally received a $7,500 First-Time Homebuyer Credit in 2008 and have been making the required repayments since 2010. By the end of 2021, I had paid a total of $6,000. Beginning in 2022, TurboTax’s repayment calculation appears to have been incorrect, resulting in underpayments and subsequent IRS penalties:
2022: Paid $467 instead of $500 → IRS penalty $150.00
2023: Paid $467 instead of $500 → IRS penalty $594.00
2024: Paid $66 instead of $500 → IRS penalty $150.00 + interest $1.86
The correct repayment for each year should have been $500, but TurboTax computed and filed lower amounts for 2022 and 2023, and a significantly lower amount for 2024. These miscalculations directly caused a total of $895.86 in penalties and interest, which I paid to the IRS.
Given that these penalties and interest were the result of incorrect calculations in the TurboTax software, I respectfully request a refund of $895.86.
I have documentation from the IRS showing the amounts paid and the penalties assessed, and I am happy to provide them upon request.
Thank you for your attention to this matter, and I look forward to your prompt resolution.
Sincerely, John
