Question
Underpayment penalties
I have a client and her husband, whose entire income is derived from interest, dividends, and capital gains (not taxed), plus a retirement income which is taxed, and social security income. Because of huge investment income, their tax liability shot up to over $10,000 for 2023. Proseries computed an underpayment penalty of $188.00, which was included in her taxes due. I received a notice from her that a check was issued to her for the $188.00. Apparently, IRS determined she was not being penalized for the tax liability. Does IRS charge underpayment penalties on income solely derived from investment income? Also, how can I stop Proseries from computing penalties and interest?
I would rather IRS compute it sinc
