Failure to file penalty

ajp · ‎04-26-2021

I have a client that didn't file 2019, and it turns out that he owes tax.

I would expect him to be subjected to the failure to file penalty. Does proseries calculate this or does he wait for a letter from the IRS? Or, did that penalty get a blanket waiver because of the pandemic? I have looked through IRS notices, but I haven't seen anything mentioned. Maybe I missed it?

Thank you!

sjrcpa · ‎04-26-2021

There's no blanket waiver.

The more I know the more I don’t know.

Lukepccpa · ‎04-26-2021

There is a late penalties and interest worksheet in ProSeries. Personally, I just let the IRS calculate the penalty.

There is no blanket waiver, but if this is the first time they have filed late and they are current on all filings and taxes, you can ask for abatement under the first time penalty abatement provisions

https://www.irs.gov/businesses/small-businesses-self-employed/penalty-relief-due-to-first-time-penal...

View solution in original post

Just-Lisa-Now- · ‎04-26-2021

ProSeries doesnt figure it for you, he'll have t wait for the bill for the penalty and interest IRS has computed.

If you've got CFS TaxTools its will give you a pretty good idea what to expect for the penalty and interest.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪