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Mark Taylor
Mark Taylor, Certified Public Accountant (CPA)
Category: Financial Software
Satisfied Customers: 2309
Experience:  Certified Public Accountant
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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: 1 year ago.
Category: Financial Software
Expert:  Mark Taylor replied 1 year ago.

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

Expert:  Mark Taylor replied 1 year ago.

Is the letter proposing an adjustment?

Customer: replied 1 year ago.
I appealed an assessment. I have now received the audit letter
Customer: replied 1 year ago.
How can I expedite resolution without being dragged through a comprehensive audit
Customer: replied 1 year ago.
the original letter was an adjustment letter.
Expert:  Mark Taylor replied 1 year ago.

When did you file the return?

Customer: replied 1 year ago.
2011 TY
Expert:  Mark Taylor replied 1 year ago.

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

Expert:  Mark Taylor replied 1 year ago.

When was the 2011 return filed?

Customer: replied 1 year ago.
Filed in March, 2012
Customer: replied 1 year ago.
They sent the notice right at the limit
Expert:  Mark Taylor replied 1 year ago.

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

Expert:  Mark Taylor replied 1 year 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 1 year 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 1 year ago.

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

Customer: replied 1 year 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 1 year ago.

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

Customer: replied 1 year ago.
Sent a letter. they have now responded with an audit and request for more information
Expert:  Mark Taylor replied 1 year ago.

What information are they requesting?

Customer: replied 1 year ago.
W2's, and other income - all of which was reported on the return
Customer: replied 1 year ago.
Explanation of the types of payments which were all reported
Expert:  Mark Taylor replied 1 year ago.

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

Expert:  Mark Taylor replied 1 year ago.

What amount was misclassified on the return.

Customer: replied 1 year ago.
all
Expert:  Mark Taylor replied 1 year ago.

Are they asking for information relating to your schedule C?

Customer: replied 1 year 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 1 year 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 1 year ago.
Can I agree to the amount owed after I have appealed?
Expert:  Mark Taylor replied 1 year ago.

Yes.

Customer: replied 1 year ago.
Can I just call and agree or do I have to write a letter?
Expert:  Mark Taylor replied 1 year ago.

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

Expert:  Mark Taylor replied 1 year 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 1 year ago.

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