IRS says that I owe more money.

I received a letter today dated May 15th from the IRS saying that the income and payment information that they have on file does not match entries on my 2009 Form 1040.  I have until June 15th to respond.  I used 2009 Turbo Tax to prepare the filling, and my copy of that filing appears to me to show income entries that the IRS claims are missing.  For one thing, they are asking for more taxes on the Social Security income that I and my deceased husband received.  The amount of income that we received that I entered into Turbo Tax matches the reporting forms sent me by the SS Administration.  Also what I reported as income from an annuity matched the forms sent me by the company paying that annuity. This was my first attempt at paying taxes because it had always been done by my husband in the past.  I'm not sure whether to first contact Turbo Tax see if either they or I made an error or to first call and discuss it with the IRS.  I suspect that I had better go ahead and pay the $1,449 to avoid more interest penalties even if I try to protest the IRS finding.  If they are wrong I would hope to be credited this year with the payment.  Does anybody have any experience with this sort of problem?
    There is probably no error with the social security.  The taxable amount of social security increases as your other income increases, so more than likely the IRS found some income that you forgot to include on your return.  That income would in itself be taxable, and would also increase the taxable amount of your SS.

    The letter you received should tell you what else, besides SS was changed by the IRS.  Did you forget to include a 1099-DIV or 1099-INT for example?

    If you cannot figure it out from the letter, you should call the IRS on the number given in the letter for more information.  TurboTax will not be able to help you unless you know exactly what the IRS thinks is incorrect, and once you know that, you can either accept the IRS ruling or dispute it following the instructions in the letter.
    • Thank you Macuser_22.  Interestingly enough when I looked in my return for the things that they said I had not filed, I found them and also the work sheets that Turbo Tax used to do the calculations.  I will be calling the IRS.
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