Greta
Level 9
Tuesday
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Corporation owes $500 in taxes; underpayment penalty is $20. Seems high. Last year their tax was zero. Is there a way to negate the $20 penalty?
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abctax55
Level 15
Tuesday
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Zero tax prior year means you can't rely on that safe harbor.
You 'might' be able to ask for "1st time abatement" (I'm not even sure an underpayment penalty qualifies).
BUT... using that one-time-get-out-of-jail card for just $ 20 isn't wise. And asking for it would easily eat up $ 20 of time spent. IMHO anyway.
HumanKind... Be Both
Greta
Level 9
Wednesday
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If prior year's zero tax is not a safe harbor, does that mean that a C-corporation must make estimated quarterly taxes even when a small tax ($500) is due at year's end?
sjrcpa
Level 15
Wednesday
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Yes if next year's tax is expected to be >0.
The more I know the more I don’t know.
