Corona virus distribution

[mcd1231]

If a client opts to spread her 50K Corona Virus distribution over 3 years ($16,667 in 2020, 2021 and 2022), will she have to pay penalty and interest on the amount they didn't claim on their 2020 Federal return?

[IRonMaN]

Wouldn't that kinda defeat the purpose of spreading it over 3 years?

[mcd1231]

yes 

I always like to check with an expert when I have a tax form that is new to me.  Silly me, lol.

[qbteachmt]

Read the Form 8915-E instructions. After all, you'll be using it for Three Tax Years, so you should get to know it.

[mcd1231]

I have already printed and hilited it and put it in the client's file.  Like I said just looking for confirmation from the experts.

[Just-Lisa-Now-]

Could be some estimated tax penalty in 2021 and 2022 is they end up owing some money on those returns due to this additional income that has no withholding on it.