First-time tax filer shock - expected refund but got a bill instead!

So if the preparer messed up, is the original poster responsible for fixing it or are they? And if there's a discrepancy between what the tax prep place submitted and what the IRS says, who pays any penalties?

You're ultimately responsible for the accuracy of your return, even if someone else prepared it. If there's an error, you'll need to file an amended return to correct it, though a reputable preparer should help with this at no additional cost if it was their mistake. As for penalties, if you pay the amount owed before the deadline on the notice, you can often avoid most penalties. If the error was clearly the preparer's fault, you might be able to ask them to cover penalty costs, though this depends on their policies and your agreement with them.

Does it work if you've already filed with TurboTax? I'm not in the exact same situation but the IRS is saying I owe more than what my return calculated and I have no idea why.

How much does the service cost? Their website doesn't seem to say and I'm always suspicious when pricing isn't transparent. Is it worth it compared to just calling the IRS directly?

Yes, it absolutely works with returns filed through TurboTax! That's actually what I used originally. You just upload your TurboTax PDF and the IRS notice, and it compares them to find the problem. The cost was reasonable - especially compared to paying a tax pro by the hour to review everything. I don't remember the exact price since it was last year, but it was definitely less than what I would have paid for an hour with a CPA, and it saved me from having to take time off work to go to an appointment.

Wait, so this service somehow jumps you ahead in the IRS phone queue? How is that even possible? Sounds too good to be true or maybe not entirely ethical if they're finding a way around the system.

So they just call the IRS for you? I don't get it. How does this actually work and why would it be faster than me calling myself? I've been trying to get through for weeks about an issue with my payment plan.

It doesn't jump you ahead in the queue - what it does is call and navigate the phone system for you, then when it finally reaches the hold queue, it calls you so you don't have to sit waiting for hours. It's completely legitimate and uses the same phone system everyone else uses. They basically have an automated system that calls, presses all the right options, waits through the holds, and only connects you when there's actually a human on the line ready to talk. It's not skipping the line - it's just handling the annoying waiting part so you don't have to keep your phone tied up all day.

Yeah it was exactly one of those places. The guy kept talking about how I could get my money "same day" which sounded great at the time. I didn't realize they were taking out so much in fees until I looked at the paperwork later. But that still doesn't explain why the IRS is saying I owe them directly, right? The fees would have just reduced my refund, not made me actually owe more taxes... unless I'm misunderstanding something. The letter specifically mentions underreported income, which doesn't seem related to the preparation fees.

You're right - the fees would just reduce your refund, not change what you owe the IRS. Those are separate issues. The "underreported income" means the IRS has records of you receiving more money than what was reported on your tax return. Do you have any side hustles, even small ones? Sell anything valuable? Cash any large checks? Receive any unemployment at any point? Sometimes even bank interest or dividends from an account you forgot about can trigger these notices. Check the letter carefully - it might specify exactly what income they think is missing.

Is Credit Karma Tax still free? I used it last year and it was pretty straightforward even though I had some 1099 income and a W-2.

Credit Karma Tax is now called Cash App Taxes, but yes, it's still free for federal and state returns! It works well for most basic to moderately complex situations. Just be aware it doesn't support multiple state filings or some less common tax situations like foreign income or rental property depreciation.

I did get copies but honestly I don't understand half of what's on them. There are all these forms and schedules that don't make any sense to me. But I'll definitely go back and ask them to explain. Do you think they might have entered something wrong on purpose to make it look like I'd get a bigger refund? The guy kept talking about how he could "maximize" my refund which sounded good at the time.

It's unlikely they did something fraudulent on purpose (that could cost them their business), but they might have been sloppy or made assumptions without asking you proper questions. Sometimes preparers at those places work on commission based on how many returns they process, so they rush through them. When you go back, ask specifically about the "underreported income" mentioned in the IRS letter. They should be able to run a comparison between what they submitted and what the IRS has on file for you. Don't leave until you understand what happened - it's your money and your tax record at stake.