Level 2

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2210 calculation

5 replies
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I was trying to figure out why my client had a $7 penalty and it appears there may be a glitch in Proseries software calculations for the 2210 payments by quarter LINE 11. Taxpayer had an extension payment of $30k with a resulting 2020 overpayment of $42k applied to 2021. 2210 is only picking up the 12k for the first quarter and puts the $30k in the June 15 column. After reviewing I believe it should be picking up and applying all 42k as of 4/15/21. Has anyone encountered this?

Thanks,

Carol

ProSeries Professional

This topic has been closed for replies.

sjrcpaAnswer

Level 15

The 1040 deadline was extended last year. Not the Q1 2021 estimated tax payment date. So if that extension payment was made on 5/15/21 last year, the resulting overpayment to 2021 was effective 5/15/21 (or whatever last year's due date was. I have trouble remembering.) That makes the Q1 2021 estimate late.

Now if they were in Texas, or whatever other places got until June 15 that doesn't apply.

And for $7 it is not worth spending time on. @BobKamman would probably tell you to suppress it.

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

M

msmith7305

Level 6

I made a posting a few months ago about 2210 errors. Apparently fell on deaf ears. I am also seeing the prior year overpayment not showing up in the first quarter line 11 amount. However, I noticed in one return that, even though it showed an underpayment that quarter and the following quarters, no penalty was calculated. If the prior year overpayment had been displayed, the 2210 would have shown an overpayment in each quarter.

It is definitely screwed up. In several ways. Don't even think about us TX people with the 1st payment deferred to June 15th.

C

CappieGAuthor

Level 2

Ahhh! Thanks - makes sense. Luckily he made the extension payment by 4/15 since it included 1 qtr estimate. Thanks all!

sjrcpaAnswer

Level 15

The 1040 deadline was extended last year. Not the Q1 2021 estimated tax payment date. So if that extension payment was made on 5/15/21 last year, the resulting overpayment to 2021 was effective 5/15/21 (or whatever last year's due date was. I have trouble remembering.) That makes the Q1 2021 estimate late.

Now if they were in Texas, or whatever other places got until June 15 that doesn't apply.

And for $7 it is not worth spending time on. @BobKamman would probably tell you to suppress it.

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

BobKamman

Level 15

I wouldn't call it suppression. Let's save that word for Putin. I would just check the box on the 2210 that says "Let IRS figure the penalty." They won't.

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