IRS claims I OWE MORE PENALTY FOR LATE ESTIMATED TAX PAYMENTS THAN Turbo Tax CALCULATES -HAS ANYONE ELSE RU N INTO THIS?

Forum|Forum|7 years ago
June 6, 2019
3 replies
10 views

I used 2210 to prorate income, deductions and tax payments to the period they occurred in. Does IRS take this in account?

TurboTax Home & Biz Windows

TaxGuyBill

Level 13

Are you sure the IRS notice is for late Estimated Tax Payments? Or did you not pay all of your tax by April 18th, and it is about Late Payment (not Estimated)?

magassocAuthor

Level 2

Absolutely, I paid all of my taxes i9ncluding the turbo tax calculated penalty well before April 17. I had paid about 90 % of the tax owed through withholding and/or estimated payment well before that.

VolvoGirl

Level 15

I don't know if the IRS uses that but they should. 2210 is one of their forms. Maybe you filled it out wrong. Turbo Tax just calculates an estimated amount.

Turbo Tax can not figure it accurately because they don't know exactly when the IRS or state will get your return and tax due payment. It's very common and normal and expected for the IRS or state to bill you for more or send you a refund.

magassocAuthor

Level 2

I filled out the 2210 correctly. I have been doing this for several years and have never had a problem before. The numbers provided by the IRS seem to ignore the 2210 phasing of income, deductions and tax payments. Approximately 75% of my income occurred in Dec (IRA distributions and stock sales). I matched that with a large estimated tax payment.