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I do the same thing. Being 100% responsible for my own paycheck, I was always worried I'd get sick / injured / stock market would crash and wouldn't have excess cash in September or January. When I had the funds in April, I just paid everything for the year and eliminated that risk. I never had a car loan or credit card debt either because I wanted to keep my cash needs low just in case. Also in January I made my retirement account contribution for the next year so it was invested early.

Under the age of 24. When the son no longer qualifies as a Qualifying Child, then look to the requirements to be a Qualifying Relative. The IRS has a lot of material regarding dependents and even an Interactive Tax Assistant (ITA) dependency wizard: https://www.irs.gov/help/ita/whom-may-i-claim-as-a-dependent https://apps.irs.gov/app/vita/content/globalmedia/4491_dependency_exemptions.pdf

You would have to do interest tracing.

Gross income test applies to qualified relative but not to qualified child, so it depends.

A moot point now, but instead of filing PF for two years they could have filed form 8940 to receive retro recognition as a Public Charity. Sounds like they need some sound advice on the difference between a Public Charity and a PF. For a PF they need to be aware of the minimum distribution requirement, self-dealing rules, serving a charitable purpose among other concerns. Maybe a reason why they are changing tax preparers? By their choice or were they fired?

right. I was hopeful that TAS might have a memo on the notices, but it appears that their website is only providing generic info. But I'll use this as another opportunity to beat the drum to go ahead and procure 8821's from your clients before an apparent need arises. I have them on about 75% of my clients and I know of at least one preparer who requires an 8821 from all his clients. I go through and check all of mine in October to see if there are any surprises waiting for my clients. There are also companies who will monitor all this for you (if you've checked the 3rd party box on the 8821). Roger Nemeth (Bill's son) in Havana, FL has such a business.

Unfortunately, the original notices were suspended during COVID. The IRS restarted sending out notices in February which is why clients are receiving these balance due notices now. You will need to have your clients request a "Record of Account Transcript" which will show everything.

Because he has to complete the form and pay on pay.gov anyway, tell him to do that himself now. Give him the instructions.

Where is IRS interest deductible? It is not an "ordinary and necessary" business expense, and for an individual taxpayer it's personal like with a credit card.

I had a self-employed client who owed in the five digits every year. The first time I prepared his return I dreaded telling him he owed something like $20k. He didn't even flinch. He said he makes better use of that money in his business during the year and the profits more than make up for the interest and penalty. He had figured out what was best for him. I like Dennis's idea of having all the withholding in December. For clients who take their IRA distributions in December, they could have their year's taxes withheld and not bother with estimates. Now that banks actually pay decent interest, putting the estimate money into a savings account could yield some profit. I usually pay all of my estimates at once in April since I make most of my income in the first quarter and have the cash. I might rethink that strategy.