Possi Posted July 2, 2018 Report Share Posted July 2, 2018 My great client got married in 2017 to a man who hasn't filed for 2010 forward. The great state of VA was going to levy his account for about $8k when he called me. That was for the 2014 tax year, so I started there. He is having to get a new security clearance for his job which requires he file a tax return for every year. I did '13, '14, '15 and '16. He owes a couple thousand each year. Now, I'm backing up the truck and doing 2010, 2011 and 2012. For 2010, he owes $1,757 in federal taxes for that year. I am thinking of overriding the 2210 so it won't address the penalty since it will only include the penalty that year ($38). It's not correct or helpful. Just curious, how much will the penalty and interest be? I used to have a program that someone recommended to me (from this site) but I didn't use it enough to justify the cost. Can anyone run that number for me? Or point me to a site? Quote Link to comment Share on other sites More sharing options...
Lee B Posted July 2, 2018 Report Share Posted July 2, 2018 What I do in a situation like this is I tell the client there will be penalties and interest then I let the IRS calculate the numbers, which I double check of course. This approach lets the IRS be the bad guy, instead of me. Then if I find a mistake, saving the client money, I can be the bearer of good news, sort of. 8 Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted July 2, 2018 Report Share Posted July 2, 2018 Agree, I once calculated a penalty by the state by a few dollars more and the state said they will not refund the extra money to my client. Another client where I prepared a couple years back never received a bill for some years from the IRS, called to find out the status was told if my client hasn't heard back from the IRS it's all good, client was going to setup a payment plan after the IRS had calculated all the fees. 2 Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted July 2, 2018 Report Share Posted July 2, 2018 I TOTALLY agree with cbslee. Whenever I try to calculate the penalties, I always get it wrong. 2 Quote Link to comment Share on other sites More sharing options...
Possi Posted July 3, 2018 Author Report Share Posted July 3, 2018 Thanks, y'all. I won't even attempt it! 2 Quote Link to comment Share on other sites More sharing options...
Pacun Posted July 3, 2018 Report Share Posted July 3, 2018 All I tell my people is: "Since you owe $2,000 for 2010, they will penalize you $500 for not filing, $500 for not paying and then you will have interest calculated for each year. So technically, the amount you owe will almost double, but the IRS will gladly calculate everything for you". Some people say "But I want to know now".... my answer is "This return was due 7 years ago and all the sudden it is urgent????" 3 5 Quote Link to comment Share on other sites More sharing options...
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