Tax Penalty

[Tracy Lee]

Client is realtor who makes the majority of her income 3rd and 4th quarter and also pays in the appropriate amount of estimated taxes for those quarters.  She always over pays and always has a refund from federal and state. She does not chose to carry forward to the next year.

Last year federal and state penalized her regardless and did not issue her all her refund amount.  I would like to get ahead of this this year and put a statement in the tax return.  Is there a place to do that other than the Form 2210 Part 2 Waiver of Penalty, and taking the time to figure out their quarterly AGI on the Schedule A1?  It is a large return with a lot in it.  And will the 2210 efile anyways if it shows 0 penalty because she has a refund coming?

[Lynn EA USTCP in Louisiana]

Did you use the annualized method on the 2210 and the state form ?

[Tracy Lee]

Not yet, I'm waiting for client to give me her P & L by the quarter to do the breakdown (if necessary). 

Checking the return shows the Form 2210 as an error that will not allow it to efile because there is no penalty right now.  Hmmmm. 

Can I use Form 8275 or 8275-R as an explanation instead?  Or is there another preparer explanation form available?

[Abby Normal]

1 hour ago, Tracy Lee said:

Not yet, I'm waiting for client to give me her P & L by the quarter to do the breakdown (if necessary). 

 

The "quarters" aren't calendar year quarters. Look at the forms and give her the exact dates you need.