BobKamman
Level 15
05-01-2026
02:33 PM
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California CPA and maillist creator James Counts adds this information. So, IRS doesn't assess the ES penalty at the same time as they assess the tax? And these taxpayers will receive bills later?
"On one of my tax groups, it was posted that an EA out of New York got this response when they called the IRS Tax Practitioner Hotline to why their client got the CP53E letter from the IRS.
My client received the same CP53E letter and we did reach out to the tax practitioner hotline. After a wait on hold for over an hour, I spoke to an agent (Agent Whitney) who said that they want to refund my client the underpayment penalty that I had him pay with the return. She recommended that the client, not do anything at this time, wait 6-8 weeks for a paper check, then do NOT cash the check, and wait till the IRS computers catch up and access [probably means "assess"] the underpayment penalty. She did agree that this is ridiculous but said that the IRS computers have not calculated the underpayment penalty yet, which is what they are trying to return. Once they send the underpayment penalty notice, she said to return the refund check with the penalty notice and ask for any additional interest and penalty to be reversed (but keep copies of everything)."
