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Discussion:Amend for Est tax penalty not owed

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Discussion Forum Index --> Basic Tax Questions --> Amend for Est tax penalty not owed


Discussion Forum Index --> Tax Questions --> Amend for Est tax penalty not owed

Kbairtax (talk|edits) said:

27 February 2014
Okay....I used the box, but most conversations pertained to whether or not to INCLUDE an underpayment penalty on an amended. I have the opposite.

I basically would like to know if I can amend for an estimated tax penalty that should not have been paid. I asked the client if they received a refund of this amount and they indicated they had not.

The client had 2012 professionally prepared. They had a SIGNIFICANT increase in income from 2011 due to distributions from inherited IRA's. (287K worth) The return had $342 in underpayment penalty and the CPA did not zero it, probably because the 2011 return was not available to him. The taxpayer more then covered the 100% prior year so not sure why he did not just exempt it anyway, but he did not. So, new client brings 2011 and 2012 to me in order to prepare the 2013. I was able to see for sure that 2011 liability was covered and no penalty should have been paid.

So, can I amend for just this?? There would be no numbers on the 1040-X since there is no changes to the numbers on the returns. Line 15 is for amounts paid with return but specifically states "not including penalties".

Thanks in advance

Mscash (talk|edits) said:

27 February 2014
If you can prepare a Form 2210 that shows the correct penalty is less than what was assessed, file it with a Form 843.

Doug M (talk|edits) said:

27 February 2014
I have done it successfully via 1040X

EZTAX (talk|edits) said:

28 February 2014
If you are feeling lucky you might see if the tax practitioner hotline can take care of it. It is so much easier to get through to them than it used to be.

Ckenefick (talk|edits) said:

28 February 2014
And you might want to make sure the amount wasn't already refunded.

Kbairtax (talk|edits) said:

28 February 2014
Thanks to all. Chris, I asked the client again and they did not get anything back. I think I will table this til after the season and see if I can get the Practitioner hotline to refund. If not then I will do the 843/2210 route. I had not thought of that!

Thanks again!

Nilodop (talk|edits) said:

28 February 2014
From the 1040X Instructions: Do not file Form 1040X if you are requesting a refund of penalties and interest or an addition to tax that you have already paid. Instead, file Form 843, Claim for Refund and Request for Abatement.

Mscash (talk|edits) said:

28 February 2014
The Estimated Tax Penalty is keyed off the tax on the original return. Adjustments, up or down, do not matter so attaching Form 2210 to 1040-X will probably be considered a request to adjust it based on the revised tax. A 2210 prepared based on the previous year's tax as the requirement for the current year should be sent with Form 843.

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