Why hasnt form 2210 been adjusted to 85%?

[dawn]

It is my understanding that the IRS has adjusted the underpayment calculation % to 85% instead of 90%.  Lacerte still says 90% on form 2210.

[rbynaker · Accepted solution]

I'm not exactly sure what to expect on this.  I don't think they're going to change the 90% to 85% on the face of the 2210 form / calculation, but it sounds like that's what you're expecting.  The information from Notice 2019-11 is fairly specific:

https://www.irs.gov/pub/irs-drop/n-19-11.pdf

"To request this waiver, an individual must file Form 2210, Underpayment of Estimated Tax by Individuals, Estates, and Trusts, with his or her 2018 income tax return. The form can be filed with a return filed electronically or on paper.  Taxpayers should complete Part I of Form 2210 and the worksheet included in the form instructions to determine if the waiver in this notice applies. If the waiver applies, check the waiver box (Part II, Box A) and include the statement “85% Waiver” with the return."

So, rather than change 90% to 85%, I think they need the checkbox (and if they're feeling generous, a worksheet that does the math for you and automatically checks the Part II Box A when applicable.)

I'm guessing this is just the normal ping-pong match with the IRS which is why this is delayed.  IRS released the notice on 1/16 (when most of their employees were still on their 5-week Christmas break) so their efile schema had to be updated and that info pushed out to the software vendors.  Then the software vendors have to update their programming and submit the updated forms to IRS and wait for approval.  In the grand scheme of things this year, I would certainly put "get 199A working" as a higher priority than "fix the 2210".  Folks who file a 2210 usually owe money so they're not looking to file by the end of January.

The charity thing though, ridiculous, no excuse.

[George4Tacks]

@Kathi_at_Intuit may want to offer a timeline and defense of these two items. Are you really pedaling as fast as you can, or has Lacerte fallen off the bike and lost it's way?

[George4Tacks]

For the same reason that Schedule A Contributions are still at 50% instead of 60%. Lacerte is pedaling their little tricycle as fast as they can to do ALL the changes. Yours is a very new change and it will take a while for them to catch up. 

[TaxGuyBill]

I disagree, it is for different reasons.  The 50% charitable contribution is because Intuit is incompetent.  The 85% on 2210 is due to recent changes, but the recent change will likely take a while to implement in the program due to Intuit being backed up by incompetently not having the new law changes done earlier.

[George4Tacks]

But.are we havin'fun yet?

[Kathi_at_Intuit]

Thanks all for reaching out. Form 2210 when there is a waiver for the 85%, it shows on the form itself and looks like the attached file. If there is no explanation of waiver, Lacerte will generate diagnostic Ref #705, that an explanation for this waiver needs to be entered. I have not heard any indication that the form will be changed as of yet.

For the charitable deductions, I know that we are aware and have created a diagnostic about it. I am unable to speak for development however, I have supported our products for many years and how we implement change and how fast it is released is based on a multitude of things. These things could be, but not limited to, its complexity, outstanding tax law changes and whatever else is on our development's plate. One reason why it might not have happened as of yet (this is purely speculation and I might not be searching the IRS site well enough), could be dependent upon more form instructions. I tried to find publication 526 for 2018 as this might impact how the new 60% deduction interacts, but I was not able to (as I said I could have missed it). Our development is working very hard to get all the changes done and to fix other things expected or unexpected that may come up throughout the tax season.