Comments on: Recovery Rebate Ruckus: Why are TurboTax Users Getting Angry Letters from the IRS? http://www.rapidtax.com/blog/index.php/recovery-rebate-ruckus-why-are-turbotax-users-getting-angry-letters-from-the-irs/ Tax news, personal finance, and more! Thu, 29 Jul 2010 18:11:04 +0000 http://wordpress.org/?v=2.7.1 hourly 1 By: Bill V http://www.rapidtax.com/blog/index.php/recovery-rebate-ruckus-why-are-turbotax-users-getting-angry-letters-from-the-irs/comment-page-1/#comment-21 Bill V Fri, 10 Jul 2009 05:02:28 +0000 http://www.rapidtax.com/blog/?p=82#comment-21 TurboTax is not at fault for the recovery rebate ruckus. In fact, the IRS provides taxpayers with access to their tax rebate amount. Thus, they have the records of how much everyone received. I'm not sure if I'm missing something but the IRS probably should have cross checked that information before issuing the refund. TurboTax is not at fault for the recovery rebate ruckus. In fact, the IRS provides taxpayers with access to their tax rebate amount. Thus, they have the records of how much everyone received. I’m not sure if I’m missing something but the IRS probably should have cross checked that information before issuing the refund.

]]> By: Bob Meighan http://www.rapidtax.com/blog/index.php/recovery-rebate-ruckus-why-are-turbotax-users-getting-angry-letters-from-the-irs/comment-page-1/#comment-20 Bob Meighan Wed, 08 Jul 2009 14:28:45 +0000 http://www.rapidtax.com/blog/?p=82#comment-20 It is not just TurboTax customers who are getting letters from the IRS on the rebate, it is hundreds of thousands of taxpayers, without regard to the software they used. The IRS has publicly stated that the rebate issue is probably one of the top issues from this past season. The reason so many have been taxpayers have had their rebate recomputed by the IRS is because they entered the 2007 rebate amount incorrectly on their 2008 tax return. For many taxpayers, their 2007 rebate was reduced (or offset) by delinquent federal taxes, child support, etc. and this caused them to enter the amount after offset (not correct). Many others erroneously indicated they received no rebate even though they did. As a result, in both cases the rebate calculated for 2008 will be wrong. I hope this information helps. Bob Meighan VP, TurboTax It is not just TurboTax customers who are getting letters from the IRS on the rebate, it is hundreds of thousands of taxpayers, without regard to the software they used. The IRS has publicly stated that the rebate issue is probably one of the top issues from this past season.

The reason so many have been taxpayers have had their rebate recomputed by the IRS is because they entered the 2007 rebate amount incorrectly on their 2008 tax return. For many taxpayers, their 2007 rebate was reduced (or offset) by delinquent federal taxes, child support, etc. and this caused them to enter the amount after offset (not correct). Many others erroneously indicated they received no rebate even though they did. As a result, in both cases the rebate calculated for 2008 will be wrong.

I hope this information helps.

Bob Meighan
VP, TurboTax

]]> By: Stuart http://www.rapidtax.com/blog/index.php/recovery-rebate-ruckus-why-are-turbotax-users-getting-angry-letters-from-the-irs/comment-page-1/#comment-18 Stuart Wed, 08 Jul 2009 01:13:23 +0000 http://www.rapidtax.com/blog/?p=82#comment-18 I’m getting ready to pay the IRS $1200 for Turbo Tax’s miscalculation of the rebate. I found the error – and I put the blame on Turbo Tax. On the recovery rebate credit worksheet, lines 1 and 2 are filled in correctly. Line 3 is left blank (asking if my wife and I are filing jointly). Hmmmm. Had it been filled in correctly, it would go to line 4 to ask if either of us were members of the armed forces – and that’s a “no”. With a “no”, things should have stopped there. But, Turbo Tax went on to calculate my rebate, which I should not get per the form (incorrectly filled out by Turbo Tax). So, I’m paying the amount I owe – plus penalties (thank you Turbo Tax). As for me, I’m going back to doing taxes by hand. This is the 2nd time Turbo Tax misled me. Stuart PS: I've posted this same message on other sites. This is a problem that seems to be coming to light just now that the IRS is sending out their notices. If you have a similar problem, check your worksheet to see if you see the same error. I’m getting ready to pay the IRS $1200 for Turbo Tax’s miscalculation of the rebate. I found the error – and I put the blame on Turbo Tax.

On the recovery rebate credit worksheet, lines 1 and 2 are filled in correctly. Line 3 is left blank (asking if my wife and I are filing jointly). Hmmmm. Had it been filled in correctly, it would go to line 4 to ask if either of us were members of the armed forces – and that’s a “no”. With a “no”, things should have stopped there. But, Turbo Tax went on to calculate my rebate, which I should not get per the form (incorrectly filled out by Turbo Tax).

So, I’m paying the amount I owe – plus penalties (thank you Turbo Tax).

As for me, I’m going back to doing taxes by hand.

This is the 2nd time Turbo Tax misled me.

Stuart

PS: I’ve posted this same message on other sites. This is a problem that seems to be coming to light just now that the IRS is sending out their notices. If you have a similar problem, check your worksheet to see if you see the same error.

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