IRS is honest

Forum|Forum|3 years ago
April 29, 2023
3 replies
11 views

As I have always said the IRS is honest. Client received check for $1.02. The dollar apparently was the estimated tax penalty computed on the return and the two cents was interest. Hoping they can get caught up on all of their issues that resulted from covid.

ProSeries Professional

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Best answer by BobKamman

How did ES penalty get computed on the return? Someone forgot to check the "let IRS do it" box, knowing that nothing will be assessed if under (at least) $100?

IRonMaN

Level 15

Hopefully that 2 cents of interest doesn't throw them into a higher tax bracket next year 😉

Slava Ukraini!

PATAXAuthor

Level 12

@IRonMaN That brings me to an interesting question. Do you pick up a dollar in interest income even if it is less than 50 cents? I do. When someone passes away, the family and attorney look at the tax returns to see where the Investments and accounts are, and if there's a few cents from a checking account and it is indicated on the return than this helps them

IRonMaN

Level 15

I do what I was taught in school. 50 cents round up, under 50 cents round down. The families and attorneys will just have to work a little harder.

Slava Ukraini!

PATAXAuthor

Level 12

Should be "caught up" ...voice typo

BobKammanAnswer

Level 15

How did ES penalty get computed on the return? Someone forgot to check the "let IRS do it" box, knowing that nothing will be assessed if under (at least) $100?

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