Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

Farmer made one time estimate

taxman
Level 2

I have a farm client who made a proper one time federal estimate for tax year 2022 prior to 1-15-23.  The program is computing under payment penalty when the return was completed and the balance due paid prior to 4-18-23.  This is incorrect.  I have tried a variety of entry options.  I cannot create a return that does not show under payment penalty.  Any suggestions?  Is this a program flaw or an entry problem?

0 Cheers
3 Comments 3
Skylane
Level 11
Level 11

Well…. Paying all the 2022 estimates on or about 1/15/23 doesn’t cure the underpayment of estimated tax penalty. The payments were due 4/15, 6/15, 9/15/22 and 1/15/23. 
The software will calculate the penalty based on the dates the payments and amounts that were made.

 

If at first you don’t succeed…..find a workaround
Just-Lisa-Now-
Level 15
Level 15

Don't farmers and fishermen have some special deal where as long as all the tax is paid by March 1st its considered on time?

@taxman  did you complete the 2210-F?


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
qbteachmt
Level 15

"as long as all the tax is paid by March 1st its considered on time?"

Sort of:

https://www.irs.gov/faqs/estimated-tax/farmers-fishermen/farmers-fishermen

There is a different safe harbor for them, too. But...

"when the return was completed and the balance due paid prior to 4-18-23."

makes it out of compliance.

*******************************
Don't yell at us; we're volunteers