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Failure to file penalty

ajp
Level 4

I have a client that didn't file 2019, and it turns out that he owes tax.  

I would expect him to be subjected to the failure to file penalty.  Does proseries calculate this or does he wait for a letter from the IRS?  Or, did that penalty get a blanket waiver because of the pandemic?  I have looked through IRS notices, but I haven't seen anything mentioned.  Maybe I missed it?

Thank you!

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Lukepccpa
Level 2

There is a late penalties and interest worksheet in ProSeries.  Personally, I just let the IRS calculate the penalty.

There is no blanket waiver, but if this is the first time they have filed late and they are current on all filings and taxes, you can ask for abatement under the first time penalty abatement provisions

https://www.irs.gov/businesses/small-businesses-self-employed/penalty-relief-due-to-first-time-penal...

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3 Replies 3
sjrcpa
Level 15

There's no blanket waiver.


ex-AllStar
Lukepccpa
Level 2

There is a late penalties and interest worksheet in ProSeries.  Personally, I just let the IRS calculate the penalty.

There is no blanket waiver, but if this is the first time they have filed late and they are current on all filings and taxes, you can ask for abatement under the first time penalty abatement provisions

https://www.irs.gov/businesses/small-businesses-self-employed/penalty-relief-due-to-first-time-penal...

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Just-Lisa-Now-
Level 15
Level 15

ProSeries doesnt figure it for you, he'll have t wait for the bill for the penalty and interest IRS has computed.

If you've got CFS  TaxTools its will give you a pretty good idea what to expect for the penalty and interest.

 


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪