Question

2020 Taxes: Why did I receive a CP2000 for my full 401K distribution amounts even after I filed for the 8915-E?

Forum|Forum|4 years ago
April 2, 2022
2 replies
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I received a CP2000 today that states we did not disclose 2/3s of our 401K distribution on our 2020 taxes. Our tax returns for 2020 includes all the distribution/withdrawal amounts and two separate 8915-E forms (upto $100k/1 per spouse) breaking it all up to show the portion owed for 2020. The total that is being estimated on CP2000 is the two thirds of our distribution amount that we deferred to 2022 and 2023 PLUS roughly $10k of fees and interest.

As you can imagine, I have a lot of questions:

Any thoughts on why there's a discrepancy between what we submitted and what the IRS is claiming?
Is this due to a glitch / have other turbotax users reported a similar experience?
Is there any support available to users to review previous year's tax returns and help address similar issues?
Is it common for the IRS to make such a big mistake and disregard the actual filed tax return when sending out a CP2000?

Thank you!

R

RobertB4444

@atwater818 I would love to tell you that the IRS never makes mistakes but I think we'd both know that that is a lie, wouldn't we? In this case the IRS has missed your 8915-E. You will need to write them a letter back and include a copy of your 8915-E and the relevant sections of the return where you deferred the income.

It is also a good idea to get your 2021 return filed with form 8915-F attached which takes care of the second part of the deferral from 2020. It would be evidence in their system which might fix the whole issue - especially since the IRS is so far behind on processing their mail at this point.

TurboTax does have folks who are standing by to help with issues like this. You need to order the audit protection from TurboTax to have them working with you. Here is a link to the audit support department.

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A

atwater818Author

I spoke to the IRS today and they said they did not receive the 8915-E on their end. Everything was done via TurboTax. What's going on? Sounds to me like there might be an interface issue.