Form 2210

[XLman]

TT estimates that Form 2210 will be available to the PC program on 3/17/22.   By checking the BOX, "IRS to figure penalty", the program will bypass trying to calculate any penalty and allow filing the return without waiting for the 2210 to be released.   Is there a downside to checking this box?  My quarterly payments were more than the minimum required based on the new IRS form 2210 for 2021 on IRS website.   Has anyone else dealt with this issue?   It seems like a good option to me....

[Vanessa A]

The only "downside" is that you may get a bill later in the mail from the IRS with the penalties and interest owed instead of paying it all at the time you submit your return.

Other than that, the calculations are the same. 

[XLman]

Thanks Vanessa.   But what if there is no penalty, as I believe is the case for me because I made quarterly payments that were more than the required amounts each quarter.   I checked this using the new IRS form 2210 for 2021 that is available on the IRS site.   It shows that the required estimated payment amounts are 1/4 of the annual requirement, which is the lesser of 1) 100% of my 2020 tax or 2) 90% of my 2021 tax.   It seems that checking the "IRS to figure penalty" BOX in TurboTax, will allow me to eFile without waiting until 3/17/22 for the TurboTax update.

[Vanessa A · Accepted solution]

Checking the box won't change whether or not you owe a penalty.  So, if you are correct in your assumption that there will be no penalty, then you can check the box to file your return and that will be the end of it.  

[FresYes]

I have tried it both ways - checking and unchecking.  I have tried to file but TT says there is a new Form 2210 that will be out 2/24? The IRS website has the 2210 available right now?

[MarilynG1]

Yes, you could download the Form 2210 from the IRS website and use it as a guide to make your entries into TurboTax when it is available for Efile after 2/24.

Click this link for more info on Federal Tax Form Availability.

[FresYes]

It seemed that TT was using its version of the 2210 to make calculations for my return. My penalty was a whopping $21 so I am OK if the IRS takes it from my refund or bills me later. Can I efile now or do I still need to wait for 3 weeks?

[Cynthiad66]

@FresYes

You should be able to e-file now.  Go back through the review and follow the prompts to e-file your return.

[Edited: 2/4/22 12:45PM PST]

[FresYes]

Nope - not yet.  The estimated date to efile changed from the 24th to the 17th.

[DianeW777]

If you want to wait for the IRS to bill you for any penalty you can change your answer so you can file now, which is what our Tax Expert @Cynthiad66 was indicating based on your question.

You also have the option to wait until the form is ready to file, which is February 24th, if you choose.

[FresYes]

Hi,

Even though I do not think I should even have the penalty in the first place I would rather file sooner rather than later. So, can tell me how to get back to the point where I can choose to have the IRS bill me and I can file today?

Thank You

[DaveF1006]

The penalty will be announced in the program but you may be entitled to an exception to the penalty. Go to:

1. Federal>other tax situations

2. Additional Tax Payments>underpayment penalties

3. Continue through the section. You may be entitled to an exception if:

• Your 2020 tax liability was zero

• If your 2020 return covered a 12-month period

• if you were a US citizen or resident in 2020

If you answered no to any of these questions, there will be other questions that will determine if qualify for the waiver such as if you are disabled or if your underpayment was due to causality, disaster, or other unforeseen circumstance. Then at the end of this exhaustive interview, there will be a screen stating Let the IRS Bill Me Later. Here is where you have the option to make that choice.

[FresYes]

Thanks @DaveF1006. I tried to go back through the steps mentioned. I arrived at a section called "Annualized Income Method" where there is a path to calculate or not. I have tried both methods and have not come to the spot where I can have the IRS figure out my penalty. We do not fit the categories regarding "casualties, disasters, or unforeseen circumstances".  I understand that we are not eligible for a waiver.

Oddly, the penalty amount jumps around each time I go through this section?

I just want to file our taxes sooner rather than later.

[JillS56]

The problem you are having is because Form 2210  (the form that calculates the penalty) will not be ready to e-file until 02/24, see availability chart.    Since the form is not ready, it is likely that it is not pulling the correct date information yet.   Hold up until Form 2210 is ready and see if this issue corrects itself then.

If you really want to file before that (I am not recommending that), there is a box you can check to allow the IRS to figure the penalty and bill you later.   If you chose that option, Form 2210 is not included with your return, so it won't prevent you from e-filing.    But the best option is to wait until 02/24 or whenever the form is finalized and available so you will know exactly what your penalty status (if any) is.  

Why am I getting an underpayment penalty if I'm getting a refund?  According to your facts, this would not apply to you as you did pay timely, but it does explain how the timing works.    @DawnC

@FresYes

[artstras]

I think there are some errors in Form 2210 Part III Penalty Computation for 2021

First, the Payment Due Dates are for 2020 rather than 2021 (doesn't really affect anything, but looks wrong).

Second, in line 11 (d), the software entered my tax for 2021, not he amount that I indicated I had paid on 12/8/2021.

Just for my own satisfaction, please let me know if there is an error in the software.

I would also like to know how the software knew that I had not paid estimated tax for 2021.

Thanks,

Art