Form 2210

[glw1861]

Ok, the 2210 is now available.  However, it is not picking up over payments made prior to April 15, 2021 as made in the first quarter.  I realize the return wasn't due until May, but there is nowhere I can find to enter the date of the payment to get it into the first quarter rather than in the second since it was applied from the 2020 return.  Is the only option to check box B to request a waiver?

[jeffmcpa2010]

Overpayment applied and es payments go on "Tax Payments Worksheet" 

[glw1861]

I know that, but the problem is the amounts paid prior to April 15 with the 2020 extension, aren't flowing to the first quarter, but to the second quarter.  The same is true if the overpayment was from 2019 and rolled over a couple of times.  I can NOT find an option to check a box, enter a date, etc. to get the overpayment to go to the first quarter.  That is the problem.

[jeffmcpa2010]

If you paid with the extension, it should be flowing to the "Tax Payments" page on line 6 - Overpayments applied to 2021", which is just a total , and doesn't end up in any of the quarters.

The only place I see what it looks like you are seeing is way at the bottom of the "tax payments" page where is asks for "prior year taxes paid in 2021" line 25 amount paid with 2020 extension. I don't have state returns but it looks like that is just for the state's that take federal taxes paid during the year into account.

In anycase your total overpayment applied to 2021 federal tax should be on line 6.

[glw1861]

We aren't communicating.  It is on the tax payment sheet as it should be.  That isn't the issue.  The issue is Form 2210.  Taxpayer shouldn't be charged an underpayment penalty for the first quarter when the overpayment was paid to the IRS prior to April 15.  This is a programming issue.  I understand that if the money was paid in May with the 2020 extension that the IRS won't back date it to the first quarter, but this situation (not uncommon with my clients) where they overpay with the 4th quarter payment (estimate high) because they have the money and don't want to pay more in April, so we always apply the overpayment and reduce the first quarter payment.  It is a cash flow issue, as they get huge year end bonuses.  

There should be an option to mark when the overpayment was made, not just assume it was made after 4/15.  On the estimates there are dates that we can change.  The same should be on the overpayment due to the bizarre way the IRS did things last year.

[jeffmcpa2010]

OK Now I understand what you are saying.

I opened a return I knew had an overpayment applied from 2020 and  looked it over, (fudged withholding to force an underpayment). 

When I get to the very bottom of the 2210 page I clicked on the QuickZoom to the underpayment penalty worksheet, and it shows the applied overpayment with a date of 4-15 and counts it in the first quarter.  Under section (a) First Installment. on the second line.

So it looked ok on mine, but the situation was different as the return was filed on time, without extension payment so I can't test what your seeing.

I do believe that you are correct that any amount carrying from the prior year as an overpayment should apply to the first quarter.

[dkh · Accepted solution]

Can you remove the amount from Overpayment Applied and re-enter under Tax Payments with the date you want?    Also, at the very bottom of Tax Payments Worksheet - Line 25 - gives you the option to enter the date paid for the extension if it was something other than 05/17

[glw1861]

Thank you. I didn't see that line before, it must have just been added in the past week.  That is what I wanted/needed.

[dkh]

Glad I helped.