Underpayment Penalty

Forum|Forum|2 years ago
May 6, 2024
3 replies
23 views

Recently, we have received 2 notices with refunds of portions of the underpayment penalty calculated on the Form 1040 for tax year 2023. We suspect there will be more to come. Both notices are missing the calculation for 4th quarter of 2023 and they have refunded it to the taxpayer. Anyone else starting to see these??

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IRonMaN

Level 15

That seems to be a popular post as of late around here.

Slava Ukraini!

BobKamman

Level 15

Do they show a detailed calculation of penalty for each quarter? Is there a disaster-area exception involved?

C

Caroline1Author

Level 2

It does show the calculation. We did not realize we were included in a hurricane relief. Mystery solved.

Drphibes

Level 6

Office is in CA, a lot of these coming in now!

joshuabarksatlcs

Level 9

Most of CA counties were covered by the 2023 Storm Tax Relief.

So far, for my dear clients who got notices, the late payment penalty computations were correct. For example, a client's penalty was $150, and the amount based on the normal due dates would have been over $500. Client complained about the penalty without realizing he got a break. The penalty ($150) was computed based on the 11/16/2023 due date for Q1 thru Q3 1040ES.

A client''s living room was visited by the next-door neighbor's 1/3 redwood tree in the height of the storm. The late payment penalty was the least of his troubles. Many things in life are relative.

I come here for kudos and IRonMaN's jokes.

BobKamman

Level 15

@joshuabarksatlcs " the next-door neighbor's 1/3 redwood tree "

What kind of tree was the other 2/3 ?

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