Form 2210 underpayment penalty calculation error for the 2023 PRO SERIES software

[TaxService USA]

For the 2023 PRO SERIES software, I've had several clients send me letters adjusting the form 2210 underpayment penalty calculation error from PRO SERIES and issued them refunds from overpaying the balance due.  Everyone of these had a 2022 return on file.     

Please look into this formula and correct it, I was told to post this here when I called PS and told them about it.

[Skylane]

Federal disaster area? PS doesn’t calculate for it.

[TaxService USA]

Unrelated to the issue.

[msmith7305]

Is it possible that the dates you used for the payments don't match what the IRS shows?

[TaxService USA]

No, I don't think so.    The payments entered were ONLY from W2s so there were no dates, just split evenly over the quarterly due dates.   

I just compared the IRS calculation of the penalty from the IRS refund notice explaining the change one of them was given to the same file in PRO SERIES which was eFiled on time and exactly on 4/15/24.  ONLY the fourth installment penalty amount matched in PS vs the way the IRS actually calculates Form 2210 underpayment penalty.

I had a different one where PS still calculates a Form 2210 underpayment penalty BUT they had paid in (from W2s only) more tax than their 2022 total, so that one I removed it and checked the box for the IRS to calculate it.    It was also filed before the 4/15 deadline.    They had the same situation in 2022 and PS didn't apply the Form 2210 underpayment penalty.

I rely on PRO SERIES for this calculation and something is wrong with it and there have been several other customers notify me about this after the IRS has adjusted it.    As far as I know it is only for the 2023 program.

[sjrcpa]

"I had a different one where PS still calculates a Form 2210 underpayment penalty BUT they had paid in (from W2s only) more tax than their 2022 total, so that one I removed it and checked the box for the IRS to calculate it."

Sometimes that is not enough. Sometimes it has to be 110% of last year's tax.

How much difference are we talking about here? $22? Tell clients that the IRS computers and your software's calculations are sometimes different. Cash the checks and move on.

[TaxService USA]

That penalty you reference was $295.   The other one was $197 as calculated by the IRS but PS showed it to be $340.   

My customers rely on me for accurate tax returns.

I rely on PRO SERIES for this and other tax calculation and something is wrong with it and there have been several other customers notify me about this after the IRS has adjusted it.    

That is why I am trying to get PS to correct it when it's not as busy so I can provide accurate tax returns with my expensive tax software.

[TaxGuyBill]

Any chance they paid before 4/15?  If so, did you fill out line D on the top of the 2210 worksheet?

[Taxprohere]

"several clients send me letters adjusting the form 2210..."

Seems if this were a inherent PS programming problem, it would affect more than just several, wouldn't it?  So the answer lies in the commonality of these several clients.  What were the states or locations where they lived? 

Every one of my clients who received a fourth quarter 2210 penalty adjustment lived in a Federally declared disaster area...course most of my clients live in MA!