Anyone else having problem e-filing with IRS Form 2210 under tax reform

I'm having the same exact issue.  TurboTax sent me an email today saying the issue is fixed,  so   I re spun through the form again and it showed NO errors.    I filed,  and just got an email saying they rejected me due to Form 2210.

NOW what ????      I can't seem to un check box A in Part II  as before.   Don't know what to do next.

I was getting e-filing federal error messages with the issue. Message said F2210-003 If Form 2210 Part II Line A Checkbox …..

To uncheck this box:

Go to View and click on Forms

Pull up Form 2210

On top menu go to Edit, click on override and then unclick checkmark on Part II Line A

Description of error received:
"If Form 2210, Part II, Line A checkbox 'WaiverOfEntirePenaltyInd' is checked, then [WaiverExplanationStatement] must be attached to Form 2210."

So, I added "85% waiver" as my explanation on Form 2210 Part II Box A WaiverExplanationStatement.

eFile accepted!

Yes spoke with Intuit, bad advice on line in the software messages to go in and edit forms, which can't be done in online version, and if you buy the download Premier it will not import correctly the 2018 file from the online Premier version and you will be billed twice, which will be handled, but Intuit said as of 2/17 after 5PM ET that the Form 2210 error is not going to be corrected until 2/22/2019, but not definitive, that was the best estimate on the coding error.

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@KoalaBear1 wrote:

 When tax reform passed during 2018, I didn't realize I had to increase my withholding for 2018 to pay more tax which I'm now doing for 2019.  However, my 2018 tax went up enough for me to deal with underpayment penalty.  Until 2017, it seems like if you paid more than 90% of actual tax due, you can claim penalty waiver, but for 2018, IRS seems to be doing a one time lowering to 85% which I qualify for.  In part II of Form 2210, I checked box A, You request a waiver of your entire penalty due to tax reform or other reasons.  I put "85% waiver" on box A line.   (I think I qualify for waiver on another criteria other than 85% because I paid more tax in 2017 than tax due in 2018).

 

However, IRS keeps rejecting my return with code 32-FD-F2210-003 which has to be about Form 2210.  Anyone else having problem e-filing with Form 2210?  I understand I can paper file, but it's not only more convenient to e-file, and it may take months to know if IRS accepted your federal return by paper filing.  Are you required to paper file if you have to file Form 2210?  Do you have to include an explanation in a Word file about why you are requesting the penalty waiver if you have to paper file in this kind of situation?

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I have this problem.  I called Turbotax - no help - .they told me to file a paper copy - he knew of the problem - but no time frame on when it would be resolved.  When I said somebody on this forum said the problem would be fixed by 22 Feb - they told me to wait until 22 Feb...lol.  I tried monkeying around on the program.  Finally I checked the let the IRS figure out the penalty on the top of the form 2210 (turbo tax automatically generated the 2210 and it said  I had no penalty and checked box A and wrote in 85%, but then it was rejected because there was not statement attached).  The program allowed me to write a statement but would not attach it when it filed the tax return - it would only include page 1 of the 2210.  So when I checked this let the IRS figure out my penalty box - the form 2210 disappeared.   I'll try to update this post later when my return is accepted or rejected again.

Here are exact steps so your return gets accepted, along with an an explanation of what's happening.

(This applies to people who DO owe federal tax, and whose total money paid in during the year through your job withholding and/or estimated tax payments are in between 85% and 90% of your total tax due.)

THE PROBLEM: Form 2210 gets included with your return automatically in certain situations in which TurboTax thinks you may owe a small penalty for not having enough taxes paid in throughout the year (such as through withholding on your paychecks from work, or sending in quarterly estimates if you're self-employed). Usually, if you've paid in 90% of your tax bill, then you don't have to file Form 2210 or pay that small penalty (and there are a couple of other exceptions to paying that small penalty).

BUT... the tax law changes in 2018 kind of messed with the amount many people were having withheld from their pay checks, so there were a lot of people who would have fallen just short of that 90% threshold . My understanding is that the government basically said "Hey, we're not going to change the form, but for 2018 if you had paid in at least 85% of you total tax bill through withholding or estimates, then we'll let you off the hook from any penalty. But you have to fill out the form 2210 and write on there that the 85% Exception applies to you."

If you're a person reading this, you probably ran into this problem, and TurboTax has probably (appropriately) included Form 2210 to your return, and in the bottom half of that form, under Part II, letter A, they probably typed "85% Exception" at the end of the wording for that Letter A.

While the IRS is SUPPOSED to accept it that way (with "85% Exception" written on the actual Form 2210), the PROBLEM is that the electronic verification systems at the IRS are looking for an additional page of the return to provide the explanation of what exception gets you out of paying that small penalty.

HOW TO FIX IT: In order to make it so that the IRS will accept your return electronically, you have to FORCE TurboTax to add another page to your return. It is a very short page called "Additional information from your 2018 Federal Tax Return". To do this:

1. Go back into TurboTax to edit your return.

2. Click for the "Personal Tab" then "Other Tax Situations" (I'm using the Home & Business edition, what you need to click may be slightly different depending on the version you're using). If it asks you if you want to explore on your own, that's what you want to do (rather than having them ask you a ton of unrelated questions).

3. Under the heading of Additional Tax Payments, next to Underpayment Penalties, click the Update button.

4. When it asks "Do you want to review the information on your Underpayment of Estimated Tax form?" say YES. Then just CONTINUE through the screens about filing status, tax liability, and adjusted gross income. Say NO to Annualized Income Method. Say NO to Actual Withholding. And CONTINUE past the Date Of Payment screen. Now.... you're finally almost to the right place....

5. On the "Penalty Waivers" screen, say YES (because you have an "unusual circumstance" as mentioned on the screen.

6. On the "You Can Request a Waiver" screen, say YES.

7. On the "Do You Want to Reduce Your Penalty" screen, say "WAIVE ALL"

8. On the "Penalty Waiver Info" screen, there are some blank lines that says "Explain reasons for waiver (use as many lines as necessary)." You ONLY need to type "85% Exception" into the top line. Then CONTINUE.

9. The next screen should say "You don't owe an underpayment penalty. However Form 2210 must be filed...." Just continue on by clicking "Done with Penalty".

10. Go to the Federal Review tab.... and go back through the normal steps for resubmitting your return through the e-file process. When it gives you the chance to preview your return, you should DEFINITELY check it. There should be an additional page added as the last page of your Federal return, called "Additional information from your 2018 Federal Tax Return" which will only fill about 1/4 of a page, and all it should say on it is "Form 2210: Underpayment of Estimated Tax, Line 17, Waiver Explanation Statement, 85% Waiver".  That's what you want, so that the electronic verification of your incoming return at the IRS sees that page and says "Yep, this person submitted that extra page to tell us why they felt they deserve to have the penalty waived. All is good. Approve their submission."

Hopefully, the IRS will fix this bug eventually, but the steps above should work for many people who encountered this problem.

(Note: I'm not a tax professional, and not an employee of Intuit/TurboTax... just been doing my own taxes and using tax software a long time. Hope the instructions above were helpful.)

I also have this issue. Despite TT's fix and personal assistance from a TT support team member, my return was again been rejected on 2-17. TT should change its software to allow a user override for Box A, Form 2210 and/or allow the creation of a written explanation (CMD I in Forms MAC edition). 

If anyone has figured a workaround for this problem, please post it.

It is a bug, but I called Intuit support and was able to get the issued resolved and my 3rd E-file attempt was successful.
The rep explained that while many may be having similar issues - the fix is different based on the individual.
In my case - when we reviewed (via Step by Step) under PERSONAL > OTHER TAX SITUATIONS > ADDITIONAL TAX PAYMENTS > UNDERPAYMENT PENTALTIES...the tax due brought in from the 2017 listed an amount, but since we paid a penalty in 2017, the 2017 liability should have shown as zero.  Once we changed that - the need for Form 2210 was removed.

FORM 2210 Part II Box A E-file Reject

Rejection code from the IRS: If Part II Box A is checked and you are eligible for the 85% Waiver, your return cannot be electronically filed.

Please review Instructions for Form 2210 from the IRS website.

To e-File with Box A checked in TurboTax Desktop, please look at this instruction per this TurboTax FAQ.

If you are in TTO, because there is no forms mode option, customers must print and mail their return.

This is the result of tax reform. We understand this is a pain point for customers and we continue to seek more clarification from the IRS.

Thank you

What is the solution? Turbo Tax doesn't seem to help..