I received an IRS letter that my refund would be less than estimated on Turbo Tax. However, what I had deposited is $1700 less than my IRS letter. Where did it go?

What does the IRS website for your federal tax refund indicate for the amount that was issued? - https://www.irs.gov/refunds

Of course TurboTax account fees were not $1,700.

To access your prior year online tax returns sign onto the TurboTax website with the User ID you used to create the account - https://myturbotax.intuit.com/

Scroll down to the bottom of the screen and on the section Your tax returns & documents click on Show.  Click on the Year and Click on View order details

If you requested to have the TurboTax account fees deducted from your federal tax refund, the IRS will send the refund to a third party processor to have the fees and the service charge deducted. The third party processor will deduct the TurboTax fees plus the service charge and then attempt to direct deposit the remaining refund balance into the account that you entered on your tax return.

The letter from the IRS probably is stating that you indicated on our 2020 federal tax return that you did NOT receive a stimulus payment and therefor the amount that you did not receive was entered on the Form 1040 Line 30 as a Recovery Rebate Credit.

However, the IRS removed the credit from your tax return because the IRS shows that the stimulus payment was sent to you.  By removing the credit this reduces your federal tax refund or increases the taxes owed.

Go to the IRS website for your tax account to see what the IRS has sent to you for stimulus payments - https://www.irs.gov/payments/view-your-tax-account

If you never received the stimulus payment shown on your account then have the IRS put a trace on the payment.  Go to this IRS website for how to start a trace - https://www.irs.gov/newsroom/questions-and-answers-about-the-first-economic-impact-payment-topic-f-p...