Form 2210

Forum|Forum|4 years ago
January 21, 2022
3 replies
1 view

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....

Best answer by Vanessa A

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.

Vanessa A

Level 15

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.

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XLmanAuthor

Level 2

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 AAnswer

Level 15

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arsenarp

Level 2

I also need this form to prove that I do NOT owe a penalty, checking the box to have IRS calculate the penalty only creates a new headache by having to deal with the IRS down the road when you don't need to. Not having this form available until March is giving me pause to find another software package next year.

Aggie 71

Level 2

I would like to use a military term for the current Form 2210, but I will use nice language "It is messed up". The line 11 column (a) entry (forget about the wrong year) shows the amount for only one of my two quarterly tax payments. Therefore, I am underpaid per the IRS. A $14.00 penalty is not significant but if the form was correct there would never have been an underpayment. I signed up to receive an e-mail when the "blessed" IRS gets its act together.

bepag

Level 2

There is also a problem with the tax calculation on Schedule AI when the tax is calculated using the Qualified Dividends & Capital Gains Tax Worksheet. The long-term capital gain/loss for each the first three periods (Capital Gains Tax Computation Smart Worksheet, line B Schedule D, line 15 columns a, b, and c) are not being inflated to an annualized amount resulting in a higher tax calculation. The qualified dividends are being inflated. A workaround is to input the inflated annualized capital gains in each of the periods. Let’s see if it gets corrected in the update.