JackieCPA Posted May 25, 2023 Report Share Posted May 25, 2023 We are getting multiple clients getting extra underpayment penalties in the mail. Seems as though the IRS is calculating it differently than the software is. Anyone else having this issue? Quote Link to comment Share on other sites More sharing options...
BrewOne Posted May 25, 2023 Report Share Posted May 25, 2023 Just had the opposite happen to one of my clients--IRS took out a $256 penalty calculated by the software. The 2210 was missing the 2nd quarter interest amount--if that (7%) was not filled in, might have created an underpayment. But could well be software glitch. Quote Link to comment Share on other sites More sharing options...
BulldogTom Posted May 25, 2023 Report Share Posted May 25, 2023 1 hour ago, BrewOne said: The 2210 was missing the 2nd quarter interest amount--if that (7%) was not filled in, might have created an underpayment. But could well be software glitch. I noticed that as well. You have to manually check the input form for the interest rate. I have found in many cases the software has not updated the current quarter. Tom Longview, TX 1 Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted May 25, 2023 Report Share Posted May 25, 2023 The 2210 is for the prior year and the interest rates should be hard coded in. The interest rates that ATX does not update are the late paying ones on the 1040 itself. 4 Quote Link to comment Share on other sites More sharing options...
Terry D EA Posted May 26, 2023 Report Share Posted May 26, 2023 This very issue occurred in Drake as well. At the beginning, I thought it was a Drake issue but later discovered it appears it was an IRS issue and the software vendors had to make last minute changes. 1 Quote Link to comment Share on other sites More sharing options...
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