Gsouls
Level 3

A client used to prepare her own taxes using turbotax. For 2018 tax year, she decided to split her income by filing two separate taxes upon the advise of a trusted friend. Taxpayer did the same thing in 2019, but failed to submit the second returns. I was shocked to even hear that Turbotax permitted a payer to e-file two separate taxes with the same SSN.

It turns out that employers data submitted to IRS did not match the tax payers income declared on the returns for both 2018 and 2019. Not sure if IRS noticed that she filed two returns by spliting the income for the 2018 tax year. 

Tax payer has since received two IRS notices CP2000 for 2019 and CP 3219A (Notice of defiency) for 2018 tax years. If tax payer agrees to IRS changes, tax payer will need to pay IRS almost $19K for both tax years.

Is there any remedy for tax payer to lower her tax penalty /liability? Your expert advise would be greatly appreciated.

Thank you fir your help as always.

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