How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Mark Taylor Your Own Question
Mark Taylor
Mark Taylor, Certified Public Accountant (CPA)
Category: Financial Software
Satisfied Customers: 1008
Experience:  Certified Public Accountant
93680669
Type Your Financial Software Question Here...
Mark Taylor is online now
A new question is answered every 9 seconds

I used TurboTax for my 2011 Taxes. TurboTax entered a large

Customer Question

I used TurboTax for my 2011 Taxes. TurboTax entered a large dollar amount in the wrong column of CA FTB 540. I have received audit letter, appealed, and now are being audited. Now that I have discovered the error, can I avert the audit? If so, what steps should I take?
Submitted: 4 months ago.
Category: Financial Software
Expert:  Mark Taylor replied 4 months ago.

Hi, my name is Mark. I will be happy to help you with your question.

Expert:  Mark Taylor replied 4 months ago.

Is the letter proposing an adjustment?

Customer: replied 4 months ago.
I appealed an assessment. I have now received the audit letter
Customer: replied 4 months ago.
How can I expedite resolution without being dragged through a comprehensive audit
Customer: replied 4 months ago.
the original letter was an adjustment letter.
Expert:  Mark Taylor replied 4 months ago.

When did you file the return?

Customer: replied 4 months ago.
2011 TY
Expert:  Mark Taylor replied 4 months ago.

I know 2011 is the tax year. California has a four year statute of limitations.

Expert:  Mark Taylor replied 4 months ago.

When was the 2011 return filed?

Customer: replied 4 months ago.
Filed in March, 2012
Customer: replied 4 months ago.
They sent the notice right at the limit
Expert:  Mark Taylor replied 4 months ago.

There is no time for an audit. What exactly did the letter say.

Expert:  Mark Taylor replied 4 months ago.

Did they request information? If there is an adjustment that is assessed to your account an audit report is produced. So technically they would considered it an audit.

Customer: replied 4 months ago.
That they were adjusting my return and that I owe a lot of money. "line 7, column B, you have a subtraction where there should be none."
Expert:  Mark Taylor replied 4 months ago.

You mentioned that turbo tax put the amount in the wrong location. Do you agree with their change?

Customer: replied 4 months ago.
It doesn't appear to be correct. It was automatically placed in a form which reduced my taxes. But I now see that they should not have done that.
Expert:  Mark Taylor replied 4 months ago.

You mentioned that you appealed the assessment. How did you do that?

Customer: replied 4 months ago.
Sent a letter. they have now responded with an audit and request for more information
Expert:  Mark Taylor replied 4 months ago.

What information are they requesting?

Customer: replied 4 months ago.
W2's, and other income - all of which was reported on the return
Customer: replied 4 months ago.
Explanation of the types of payments which were all reported
Expert:  Mark Taylor replied 4 months ago.

What kind of information was on your original return (W-2's, 1099's, interest, dividends, Schedule C income)?

Expert:  Mark Taylor replied 4 months ago.

What amount was misclassified on the return.

Customer: replied 4 months ago.
all
Expert:  Mark Taylor replied 4 months ago.

Are they asking for information relating to your schedule C?

Customer: replied 4 months ago.
They ONLY want to know about why the amount was placed in the wrong column. Back to the original question. How is the best way to settle in the middle of an audit? What steps / approach should I take for an honest error on the form.
Expert:  Mark Taylor replied 4 months ago.

Sorry for the number of questions. I was trying to get a better understanding of your situation. They are not starting an audit. They only want to resolve the one issue in question. If it was an error it sounds like you may owe the tax. If that is the case, you would handle this by agreeing to the adjustment and either paying the tax or setting up a payment plan.

Customer: replied 4 months ago.
Can I agree to the amount owed after I have appealed?
Expert:  Mark Taylor replied 4 months ago.

Yes.

Customer: replied 4 months ago.
Can I just call and agree or do I have to write a letter?
Expert:  Mark Taylor replied 4 months ago.

I believe that there should be a spot where you sign agreeing to the adjustment.

Expert:  Mark Taylor replied 4 months ago.

I hope you found this information to be beneficial. If this answered your question please take a few moments to rate my response. A rating is needed in order for me to receive credit for helping you today. The rating bar is located at the top of the page – ranging from 1 to 5 stars. If you need me to clarify aspect of my response or if there are additional areas of the question that you would like me to consider please let me know. I would be happy to continue the discussion. It has been my pleasure helping you today.

Expert:  Mark Taylor replied 4 months ago.

Please let me know if you have any other questions or need clarification. I am happy to help.

Related Financial Software Questions