Underpayment Penalty and Disaster Relief

[msmith7305]

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

[sewcpa]

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

[msmith7305]

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]

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