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IRS is honest

PATAX
Level 15

As I have always said the IRS is honest. Client received  check for $1.02. The dollar apparently was the estimated tax penalty computed on the return and the two cents was interest. Hoping they can get caught up on all of their issues that resulted from covid.

1 Best Answer

Accepted Solutions
BobKamman
Level 15

How did ES penalty get computed on the return?  Someone forgot to check the "let IRS do it" box, knowing that nothing will be assessed if under (at least) $100?

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5 Comments 5
IRonMaN
Level 15

Hopefully that 2 cents of interest doesn't throw them into a higher tax bracket next year 😉


Slava Ukraini!
PATAX
Level 15

@IRonMaN That brings me to an interesting question. Do you pick up a dollar in interest income even if it is less than 50 cents? I do. When someone passes away, the family and attorney look at the tax returns to see where the Investments and accounts are, and if there's a few cents from a checking account and it is indicated on the return than this helps them

IRonMaN
Level 15

I do what I was taught in school.  50 cents round up, under 50 cents round down.  The families and attorneys will just have to work a little harder.


Slava Ukraini!
PATAX
Level 15

Should be "caught up" ...voice typo

0 Cheers
BobKamman
Level 15

How did ES penalty get computed on the return?  Someone forgot to check the "let IRS do it" box, knowing that nothing will be assessed if under (at least) $100?