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Level 2
February 16, 2019
Question

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

  • February 16, 2019
  • 22 replies
  • 6 views

 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?

    22 replies

    CheriS
    Level 6
    February 19, 2019

    Form 2210 Required but no Penalty is Applied

     

    Some customers are being required to file Form 2210 (Underpayment of Estimated Tax by Individuals, Estates, and Trusts), despite the fact that they don't actually have an underpayment penalty. Based upon clarification we are currently in the process of updating the program to not require this.

    Workaround

    Currently, we have a workaround for all customers experiencing this issue:

    Electronic Filing Rejection Code: F2210-003

    Sign-up

    This issue is scheduled to be fixed in an update that is currently planned to be released on 2/22/2019.

    We're working on a solution to this issue. Please click here to receive email notifications when any updates related to this issue become available.

     

    Original Link

    Level 2
    February 19, 2019

    Will this fix on the 22nd potentially be one that affects TT online as well, or will it only be for the desktop versions?

    CheriS
    Level 6
    February 19, 2019

    I believe it's for TurboTax Online and TurboTax desktop. Please sign up for the most accurate updates on this issue. Thank you

    Level 3
    February 19, 2019

    As happened to many others form 2210 with box A checked was not accepted by the IRS even though I was owed a refund and should have no penalty.
    I went to forms and choose form 2210 on the L side under Forms. Double click and form 2210 came up . Then on form 2210 close to the top I clicked on C: allow the IRS to calculate the penalty for me. Secondly I scrolled down to line 17 and at the bottom of line 17 is a quick-zoom button which when clicked brought a waiver explanation page. I filled out here that I was getting a tax refund and no penalty was due. The IRS now accepted the form.

    Level 2
    February 19, 2019
    I'm having the same frustrating issue. There's a glitch with efile on turbo tax which causes it not to send the required 1022 form to the irs. The computer self generated fixes do nothing but make you type in circles with the same results. Im done with turbo tax glitches. Unfortunately ,you have pay first and you cant get a refund
    February 20, 2019

    I gave up finally today unfortunately before reading all of you having the same issue.  Use TT Home & Business Mac like many of you.

     

    I just printed everything and mailed in my Federal and IL in my case returns.  They'll take quite a bit longer I suppose and hopefully they make it - should know before 4/15 at least to be certain.

     

     

    Level 2
    February 20, 2019

    Someone in another post had a great solution.  NOTE - This only applies if you do not have an underpayment penalty, and is for the ONLINE version only (this is what I use).

     

    Very simple (and don't know why TT support hasn't provided this solution.  Revisit the section (other tax payments - underpayment) and set the Tax Paid in 2017 as 0.

     

    Voila - the 2210 forms and any associated forms disappear!!!

     

    Instead of spending hours trying to delete the forms (which doesn't work at least online), this seemed to have solved it.  This only is good if you don't have an underpayment penalty.

    Level 2
    February 26, 2019

    I used someone's work-around on the ONLINE version. Go through and enter zeros in the TWO fields where 2017 tax penalty has been filled in automatically. This takes Form 2210 out of your filing. It worked for me. Finally e-filed.

    Level 2
    February 26, 2019
    I just did the same workaround for the online and efiled. Fingers crossed 🤞
    Level 4
    February 21, 2019

    as of this morning I was told that "the glitch" is in the turbo tax  program and they are working on it.  I was told to print out my tax return forms  and mail it in with a personally created expiation statement because the Turbo tax fix has not been found for the "2210 form glitch" .  

    Employee Tax Expert
    February 22, 2019

    We hear you and greatly appreciate the feedback regarding each of your experiences. Good news is that a fix is on the way!

     

    Some customers are being required to file Form 2210 (Underpayment of Estimated Tax by Individuals, Estates, and Trusts), despite the fact that they don't actually have an underpayment penalty. We are currently in the process of updating the program to not require this. Please review this FAQ and be sure to sign up  to receive email notifications when any updates related to this issue become available.

     

    If you are receiving Electronic Filing Rejection code: F2210-003 then review this FAQ, for additional detailed instruction. 

     

    **Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"
    Level 2
    February 22, 2019

    Will the software fix allow online users to file form 2210 but WITHOUT having a checkmark on Box A?

    Level 2
    February 22, 2019
    Yes, turbotax hotline told me you have to print and mail off. It's an E-file software issue. It wont efile the overpayment form. No future fix date,yet.
    I'm going to just mail mine.

    Level 4
    February 22, 2019

    Visitor 1

    Thanks for this= I have not gotten a  rejection yet for the one I attempted to efile this morning 

    but expect it is coming 

    based on your input tonight.

    I will plan to drop by the usps tomorrow = Thanks so much for your note

    MJB

    Level 2
    February 23, 2019

    I have the same problem. I answered all the questions entering all the appropriate information showing I receive a refund to the QBI deduction. The software showed no errors nor issues to I e-filed my return only to be rejected for the same reason. I reopened my return which prompted me to address the issue which I assumed it did so I started the process to e-file again. Before submitted, I printed the return noticing the explanation statement was not included even though I see it when viewing the Form for my return. Therefore, I can not e-file until this bug is fixed by TurboTax. I certainly hope support is reading this thread and will notify everyone when the fix is released. Otherwise, I'll have to print the return and mail it in.

     

    I don't understand why this form is necessary when I submitted higher Q payments than the previous year and the overall income is less than the previous year along with the fact that I get a refund this year due to the QBI while last year I had to pay. Quite annoying issue!

     

    Chris

    Level 2
    February 23, 2019

    Got my taxes accepted this morning! This was my fourth try. I'm using the online version and made estimated taxes all year based on how much i made on my side business, not what i made last year (I made much less this year in my side biz). This time when i did the 2210 form I put 0 in the 2107 field and did NOT do the Annualized Income Method. It said I did not owe a penalty and everything checked out. Whew! Waiting to hear from state whether or not it was accepted but I assume it will be. They didn't accept it last time because federal didn't accept it. 

    February 23, 2019

    This post says a fix will be released on 3/1.  It's for people who don't need to file Form 2210.

    https://ttlc.intuit.com/questions/4621180-form-2210-waiver-checkbox-marked-but-form-isn-t-required

     

    You can also sign up for a notification e-mail there.

    Level 2
    February 24, 2019

    Hi All,       (I'm not sure if better to put this as reply to first or last post, so will do both ???)
    I've been reading all the comments here for days and going crazy like the rest of you trying different
    things and getting multiple rejections.  I'm a virgin at forums, never replied to a post before, so
    not sure how to add this reply.  I will hit "reply" on this last response and hopefully someone will
    see it and pass it on if necessary so all can see.  Maybe it's way too big and will not work???  

     

    Anyway, this afternoon I figured out an easy way past this 2210 E-File rejection mess that does not
    involve doing various bad things to fool TTax into excluding form 2210 (For instance I saw people
    talking about changing their 2017 Tax amount to zero so it would skip generating form 2210, etc.)

     

    I have Desktop Windows TTax Premier 2018.
    In my case I had some tax withheld, and I also paid quarterly estimated tax payments. 

     

    This is what I did to get past the problems:

    1) Go to section > Federal Taxes/Other Tax Situations/Additional Tax Payments/Underpayment Penalties
     
    2) I went thru the section normally and on the screen for Annualized Income Method I selected YES.
       Even though my income was fairly uniform over the year other than some dividends and capital gains,
       I just chopped it up into the pieces TTax wanted.  My idea was if I enter all my income details, TTax
       will be forced to fill and actually send all 3 pages of form 2210 + the explanation text. 
       That way the IRS E-file algorithm will get all the required possible forms plus the explanation
       text, even though in the end I did not owe a penalty. 
       It was not difficult to calculate and enter the required income info, so I just did it in 15 minutes.

     

    3) TTax asks for 2018 Annualized Adjusted Gross Income for four periods:   
          1/1/2018 to 3/31/2018 = $____  This is just 3/12 x your total 2018 AGI
          1/1/2018 to 5/31/2018 = $____  This is just 5/12 x your total 2018 AGI
          1/1/2018 to 8/31/2018 = $____  This is just 8/12 x your total 2018 AGI
          1/1/2018 to 12/31/2018 = $____  This is your total 2018 AGI from line 7 of your form 1040

     

    3) TTax then asks for 2018 Net Capital Gains + Qualified Dividends for three periods:   
                                                                1/1/2018 to 3/31/2018 -- 1/1/2018 to 5/31/2018 -- 1/1/2018 to 8/31/2018
       Short-Term Capital Gain/Loss   $____                                    $____                                    $____
       Long-Term Capital Gain/Loss   $____                                    $____                                    $____
       Qualified Dividends                    $____                                    $ ____                                   $____
       (All this info was on my Vanguard brokerage accounts 1099-B and 1099-DIV tax forms and my Shedule D)

     

    4) On the last Conclusion screen, leave the box checked for Annualized Income Installment Method and
       say Done.

     

    5) Say NO on next Annual Withholding screen, unless you need to enter actual withholding amounts & dates.

     

    6) In the end I get to the last screen that says "I do not owe penalty, however Form 2210 will be filed."

     

    7) In my case this resulted in both Box A 85% Waiver and Box C Annualized Income Statement Method being
    checked off on Form 2210, and TTax added Form 2210AI and 2210 Waiver Explanation Statement automatically.

     

    8) I then went thru Federal and State review again with no errors, then went back to "Check E-File Status"
    section and resubmitted my federal and state return one last time, and both were accepted sucessfully.

     

    9) Checking the Print file of "All official Forms required for filing" I saw that TTax populated
    parts I + II + IV of Form 2210, added Form 2210AI at end of Form 2210 and added an Additional Information
    document at the very end of the federal return after the Electronic Postmark page.  So IRS got it all OK.

     

    Hopefully this helps everybody file before supposed 3/1/18 TTax fix.  Sorry my note is soooo very long!!!

    Why Intuit couldn't tell us all to do this days ago is beyond me - It should work for everyone's various cases I hope.
    Goodnight,
    Rob

    Level 4
    February 24, 2019

    Hi rafranks2

    ROB

    WOW this is thorough and helpful 

    but what a complex solution you have had to generate.

    Thank you for providing the details and thorough analysis.

    I refiled my yesterday and am not sure if it is rejected, but am taking your instructions with me on the road 

    and will definitely try it when mine is rejected again.

    I believe TT needs to put you on the team !! Thanks

    I will let you know my progress. 

    MJB 

     Martha

    Level 2
    February 24, 2019

     Hi Martha,

    The reason I didn't think to try it sooner was that it sounded like it made things overcomplicated, and it generated some extra data on form 2210AI that scared me.  But in actuality, it was just a matter of taking 15 minutes to add up and plug in the numbers that were easily available on my 1040 and 1099s, then TTax generated the rest.    It took much longer to explain it than to actually do it.

     

    I thought the nice thing is that it just refines your income amount for each quarter, and generates all the forms the IRS could want and need.  It doesn't involve tricking TTax by doing overrides and changing values to zero so form 2210 is deleted.  And if you just have simple flat income for the year, and no investments, then dividing up your AGI into 4 chunks just takes 1 minute and done.

     

    Anyway, if this all helps one person, it was worth my time explaining it.

     

    Goodluck,

    Rob 

     

     

       

     

    Level 2
    February 24, 2019

    I am using TT Online.  I was able successfully to file yesterday (Saturday Feb 23).   A week ago a spent over five hours on different calls with TT customer service because I could not figure out why my efiling had been rejected twice at Federal level.  It turns out that (in my opinion) there was a logic/programming glitch either with TT or with the IRS with respect to how to handle Form 2210 (seems it was affecting people like some retirees with low withholding taxes but who had made regular and adequate estimated tax payments). The solution proffered by TT (to send in my return by mail) made no sense at all.  Then I read a post that TT/IRS would have worked out a fix by Friday 22nd.  So I re-filed on the following day (yesterday) and it went through fine.  So, thank you TT/IRS for getting this done.