Underpayment Penalty and Disaster Relief

Forum|Forum|4 years ago
February 21, 2022
1 reply
13 views

2210 calculating penalty when no ES was made by April 15. TX disaster victims were not required to file an ES until June 15 for first payment. Is there a "magic button" somewhere I can't find that keeps the freeze victims from having a penalty calculated for the usual 1st quarter payment?

Thanks in advance

ProSeries Professional

This topic has been closed for replies.

S

sewcpa

Level 6

A Magic Button would be great.

I have looked at the 2210 calculation page for the Q1 amount and entered that on the waiver line at bottom of 2nd page. Then use button & 2nd reason for adj on 1st page to bring up a statement explaining our Q1 payment date of June 15th for Storm Uri

M

msmith7305Author

Level 6

Thanks for the reply.

I looked at the IRS instructions for 2210. On page 2 it discusses what to do if you are in a federally declared disaster area. Says DO NOT file 2210. IRS will automatically determine that the special rules apply and will, if any penalty is due, bill you.

To a degree I like that, however, I hate not calculating the penalty and telling the client to be looking for a bill if they screwed up on the other payments due. Will probably calculate what I think is due and warn them to forward the bill to me for checking.

rbynaker

Level 13

For the most part I suppress the 2210 penalties and let the IRS send a bill anyway.

I would just fudge the 1Q payment date to 4/15. If the 2210 goes away, you're done. If not then you can decide what to do next. I haven't seen many of these but I *think* the way the law reads, the "period of time" between 4/15 and the adjusted disaster due date is disregarded.

Rick

Sign up

Login with SSO

Let's get you signed in

Login with SSO