Client paid 135% of 2021 tax liability, why is Proconnect calculating a penalty since safe harbor exception was met. High income taxpayer.

[IRonMaN]

Did they have estimates paid in that weren't paid evenly during the year?

[ddeason007]

Yes paid unevenly due to Long Term Cap Gains coming unevenly during the year.  Though the safe harbor would alleviate any penalty.  Do I suppress 2210 and see if IRS bills me?  Looks like Proconnect won't apply the safe harbor.   I use Proconnect for my personal return.  Thanks for your quick reply.

[PhoebeRoberts]

110% of the prior year tax safe harbor only works if the payments are made evenly. You want to do the annualization method.

[ddeason007]

Oh joy!  Thanks for your input.