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Level 2
July 14, 2020
Solved

Penalty Charges

  • July 14, 2020
  • 4 replies
  • 24 views

I am getting FED and CA penalty for not paying 90% of taxes upfront. Client says TurboTax does not charge. He says TurboTax tech supports said if enter prior years tax liability and amount paid, penalty will disappear. Need help!

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Best answer by qbteachmt

"Client says TurboTax does not charge."

That's true; it's the IRS that charges  🙂

"He says TurboTax tech supports said if enter prior years tax liability and amount paid, penalty will disappear."

That's trying to apply the Safe Harbor rule. Does it apply or not?

4 replies

Just-Lisa-Now-
Intuit Community Champion
July 14, 2020

Just because TurboTax does not do something, doesnt mean its right.

Open the 2210 and see if you can find a way to remove the penalty.    

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
Level 6
July 14, 2020

Follow the instructions!  Look at 2018 tax return (line 15).  On Form 2210 worksheet enter this amount as prior year tax.  

HAJIAuthor
Level 2
July 16, 2020

Yes, that was it! I figured it out. Thank you for the response.

qbteachmt
qbteachmtAnswer
Level 15
July 14, 2020

"Client says TurboTax does not charge."

That's true; it's the IRS that charges  🙂

"He says TurboTax tech supports said if enter prior years tax liability and amount paid, penalty will disappear."

That's trying to apply the Safe Harbor rule. Does it apply or not?

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