- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
I have a farm client who made a proper one time federal estimate for tax year 2022 prior to 1-15-23. The program is computing under payment penalty when the return was completed and the balance due paid prior to 4-18-23. This is incorrect. I have tried a variety of entry options. I cannot create a return that does not show under payment penalty. Any suggestions? Is this a program flaw or an entry problem?
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Well…. Paying all the 2022 estimates on or about 1/15/23 doesn’t cure the underpayment of estimated tax penalty. The payments were due 4/15, 6/15, 9/15/22 and 1/15/23.
The software will calculate the penalty based on the dates the payments and amounts that were made.
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Don't farmers and fishermen have some special deal where as long as all the tax is paid by March 1st its considered on time?
@taxman did you complete the 2210-F?
♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
"as long as all the tax is paid by March 1st its considered on time?"
Sort of:
https://www.irs.gov/faqs/estimated-tax/farmers-fishermen/farmers-fishermen
There is a different safe harbor for them, too. But...
"when the return was completed and the balance due paid prior to 4-18-23."
makes it out of compliance.
Don't yell at us; we're volunteers