Hi --

Two of my clients have recently told me that the IRS sent them refund checks in the exact amount of their underpayment penalty for 2019. In both cases, the clients had significantly underpaid their taxes throughout the year, so I was not surprised that ProSeries calculated penalties for them. 

This was for the 2019 tax year, and we filed on time, in early 2020. In both cases, the clients had paid in around 65% of what they owed for 2019, and the software calculated penalties of a few hundred dollars (around 2.5%).  That all seemed reasonable to me.

So why is the IRS giving it back to them?  Was there a general amnesty for 2019 on underpayment penalties that I don't know about?

Thank you!

Heather