Underpayment Penalties being reduced by the IRS
We add estimated underpayment penalties to our client tax returns. Starting this year, almost every single client is receiving a letter that the penalty being calculated by ProConnect was incorrect and the IRS is refunding a portion of the client's money back to them for the extra penalty that was paid.
I've noticed this is happening with other software that we use as well.
Has the penalty calculations changed starting in 2025 or something?
