How to prepare Form 2210 and California Form 5808 in light of Q4 payments extensions to May 15.

[Squeeky2]

Due to the storms in California, the IRS (and then the State of California), extended until May 15, 2023 the personal income tax payments due in early 2023 from residents of affected California counties.  They similarly extended the due date of the 2022 returns until May 15.  This means that the estimated payments ordinarily due on January 17 are not due until May 15 (along with any final payment of taxes due).

My specific question relates to the deferred January 17 payments, and how to ensure that the TT forms relating to underpayment of estimated tax for TY 2022 (Federal Form 2210, and California Form 5805) do not calculate an underpayment penalty for failure to make a payment on January 17, 2023.  My sense is to do an "override" of the Q4 payment required (substituting $0 for the amount calculated by TT) .  When I do this, the program generates the correct numbers for amounts due, penalties, etc. 

The (only?) negative of handling this by override is that TurboTax doesn't like overrides (and I'm not sure that TT will let me do a Federal eFile if it detects an override in the file).

Suggestions?  Solutions?

[ErnieS0]

Do not override your return. An override will prevent you from e-filing and will void the TurboTax 100% Accurate Calculation Guarantee.

Instead, choose “Let the IRS Bill Me Later."

IRS will automatically waive your penalty based on your zip code. IRS says:

The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area. Therefore, taxpayers do not need to contact the agency to get this relief. 

However, if an affected taxpayer receives a late filing or late payment penalty notice from the IRS that has an original or extended filing, payment, or deposit due date falling within the postponement period, the taxpayer should call the number on the notice to have the penalty abated.

See IRS: California storm victims qualify for tax relief; April 18 deadline, other dates extended to May...

[Squeeky2]

Ernie has provided a nice answer, but it doesn't work in practice. 

I pay estimated taxes, my income is very uneven during the year, and I must use the Annualized Income Installment Method to determine any underpayment (and the resulting penalty).  The IRS and CA penalty waivers only apply to Q4 payments; I must still complete Form 2210AI for the first 3 quarterly payments.

You can't  use the Annualized Income Installment Method and check Form 2210 Box C (Check to have the IRS figure the penalty and send a bill if penalty due).  If you try to do this, TT will throw this error message:

Part II, Box C *is* checked (as it must be), because I am using the Annualized Income Installment Method.

If I follow Ernie's advice, I will end up being (erroneously) billed for a massive underpayment penalty.  Sure, I can get it sorted out with a lot of work, but no thank you.

.

[HopeS]

If you paid your 1st, 2nd and 3rd estimated tax on time then you should not have an underpayment penalty for those Qtrs. For the 4th Qtr Estimate, I suggest you mail the 4th Qtr payment voucher in with a STATEMENT that payment is late due to an extension provided for taxpayers affected by the storm. 

Please see below  information regarding requesting a penalty waiver:

Those requesting a waiver for part of their penalty

In addition to the general rules, there are a few other ways to have your underpayment penalty waived:

• Age 62 or older and retired or disabled. If you're age 62 or older and retired or disabled, you can ask to have your penalty waived for reasonable cause. Reasonable cause includes financial hardship or losing your physical or mental control over your faculties.
• Circumstances beyond your control. If you experienced an unusual event that prevents you from making estimated payments, you might qualify for an underpayment penalty waiver. Examples of qualifying circumstances include a grievous illness, damage to your home in a disaster, or fleeing domestic violence.
• Federally declared disaster. If you live in a federally declared disaster area, you qualify for an automatic underpayment penalty waiver.

if you're requesting a penalty waiver due to any of the above situations, enter the amount you want to be waived in parentheses on the dotted line next to line 19 (the tax year 2022 form). Subtract this amount from your total penalty and enter the result on line 19.

Then, attach a statement to your tax return explaining why you were unable to make the required estimated payments. You may also need to attach documentation, such as proof of retirement, disability, illness, or damage to your home.

Also, review the following link:

Form 2210

@Squeeky2 

[Squeeky2]

The reply of HopeS is not useful, and totally misses the point.  I have no estimated tax underpayment, and do not need to file a penalty waiver.  Further, I'm not going to make a filing that shows an inappropriate penalty for Q4 underpayment simply because the TT software is deficient / defective.

The question is how to use TT to eFile the 2022 Form 1040, and properly configure the filing to show that no Q4 estimated payment was due (due to the IRS waiver for residents of certain California counties).  By extension, no penalty will be calculated with respect to the now-suspended Q4 payment.

If I want to paper file my return, I can do an override on Form 2210, of course.  I don't want to paper file; that is why I purchased TT.