Does the §6654 underpayment penalty for estimated tax payments qualify for refund/abatement under this scenario? I have clients that have underpayment penalty for 2021 tax return and trying to determine if that might be qualified.
Thank you for this. Reading Agostino's stuff I was getting confused on the RSED and its application. I think this with the RSED article should help my understanding.
If the tax year includes interest charged, what box are you checking on Form 843, and are you filing a separate 843 for estimated tax payments and interest charged in the same tax year?
So I have a client that just mailed their 2021 return. They were due a refund of nearly 7k but we assumed it is forfeit. I didn't prepare 2021. The firm that did sent it to the client to mail last year. The client mailed it last week after I told them the IRS did not have it. They are kind of a mess. The owed with penalties about 60K for 2022. We just filed it in January. Should we file 843 for 2021 and 2022? 2023 and 2024 were just filed. The penalties are huge. A little reprieve would be nice.
Does the §6654 underpayment penalty for estimated tax payments qualify for refund/abatement under this scenario? I have clients that have underpayment penalty for 2021 tax return and trying to determine if that might be qualified.
There is no reason why it wouldn't. If payment deadlines were disregarded, the same would apply to estimated tax payments.
Thank you for this. Reading Agostino's stuff I was getting confused on the RSED and its application. I think this with the RSED article should help my understanding.
If the tax year includes interest charged, what box are you checking on Form 843, and are you filing a separate 843 for estimated tax payments and interest charged in the same tax year?
So I have a client that just mailed their 2021 return. They were due a refund of nearly 7k but we assumed it is forfeit. I didn't prepare 2021. The firm that did sent it to the client to mail last year. The client mailed it last week after I told them the IRS did not have it. They are kind of a mess. The owed with penalties about 60K for 2022. We just filed it in January. Should we file 843 for 2021 and 2022? 2023 and 2024 were just filed. The penalties are huge. A little reprieve would be nice.
I don’t have enough information to make a recommendation. If the penalties accrued after July 10, 2023, Kwong would not help.
The were not assessed penalties until we filed and that was in 2025 so I guess that answers my question. Thank you.