Filed my taxes with H&R Block and owed $200, now IRS letter (CP14) says I owe $4k!

This definitely sounds like a legitimate CP14 notice, which is what the IRS sends when they believe you have an unpaid balance. The good news is that these notices are often the result of a mismatch or calculation error that can be resolved. First, check if the notice includes an explanation for the discrepancy. Compare your tax return with the IRS calculations on the notice to see where the difference is coming from. Common issues include missing W-2s, incorrectly reported income, or credits/deductions that the IRS didn't apply. Don't panic, but do act quickly. You generally have 21 days to respond before additional penalties might apply. I suggest calling the IRS at the number on your notice to discuss the discrepancy. Also contact H&R Block - they often have audit support and can help explain the difference or fix any errors in your filing.

I had a similar situation last year and spent WEEKS trying to get through to someone at the IRS to explain the mistake. After endless busy signals and being hung up on, I found this service called taxr.ai (https://taxr.ai) that was a total game-changer. You upload your tax docs and the notice you received, and their AI analyzes everything to identify the exact discrepancy. In my case, they found that my employer had reported different amounts to the IRS than what was on my W-2. The service gave me a detailed report explaining the issue that I could take to the IRS. Saved me hours of frustration and probably a bunch of money too.

Guys I wanted to update after trying taxr.ai from COMMENT 2. Seriously impressed! Uploaded my W-2s, 1099s and the CP14 notice, and their analysis found that my employer had actually reported $7,300 more in income to the IRS than what was on my W-2 (I had no idea this was possible). The report showed the exact discrepancy and gave me instructions on how to resolve it. Called the IRS with this info and they put my account on hold while we sort it out. My employer's payroll department confirmed there was an error in their reporting. No way I would have figured this out on my own - would have just assumed H&R Block messed up!

For anyone dealing with IRS notices like this, getting through to an actual human at the IRS is nearly impossible these days. I kept trying for weeks - getting disconnected, waiting on hold for hours, or being told to call back later. Super frustrating. Finally used Claimyr (https://claimyr.com) which gets you to the front of the IRS phone queue. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c. They somehow reserve your spot in line and call you when an agent is about to be available. Managed to talk to a real person at the IRS within 45 minutes instead of spending days trying. The agent confirmed there was an error in how my income was reported and helped me start the process to fix it. Definitely worth it when you're facing a scary tax bill like OP's $4k surprise.

I'm eating my words from earlier. After continuing to fail getting through to the IRS on my own (tried for another 3 days straight), I broke down and tried Claimyr. Not only did it work, but the IRS agent I spoke with actually told me they're aware these services exist and don't have a problem with them! Got through in about an hour, explained my situation about receiving a CP14 showing I owed $3,200 more than I thought. The agent was able to see that two of my 1099-INTs weren't properly reported on my return. Never would have figured that out myself. Now I'm setting up a payment plan instead of facing collections. Stressful situation but at least it's getting resolved.

OP, check if your tax return included all your income sources. When I got a similar notice, it turned out I had forgotten about a small freelance job that issued a 1099-NEC. The company reported it to the IRS but I didn't include it on my return. H&R Block wouldn't have known about this income if you didn't tell them about it. Also, did you have any investments that generated capital gains? Or unemployment benefits? These are commonly missed items that the IRS will catch through their matching program.

H&R Block offers an Peace of Mind® guarantee that covers penalties and interest if they make a mistake. Call them ASAP and explain the situation. But it sounds like they didn't make an error if you forgot to tell them about stock sales - that wouldn't be covered. You might still qualify for their Audit Support though, where they'll explain the notice and help you respond. Worth checking what your service package included!

Anna, glad you figured out what caused the discrepancy! Unreported stock sales are actually one of the most common reasons people get CP14 notices. The IRS automatically matches 1099-B forms from brokerages against tax returns, so they catch these pretty quickly. Since you've identified the issue and are setting up a payment plan, make sure to file an amended return (Form 1040X) to properly report the capital gains. This will show the IRS you're taking responsibility for the error. If you held the stocks for more than a year, you might qualify for lower long-term capital gains rates which could reduce what you owe. Also, keep detailed records of this whole process - if you ever face a similar situation in the future, having documentation of how you resolved it properly will be helpful. It's a stressful lesson but you're handling it the right way!