2023.03.31 Broadcast - Estimated Tax Underpayment Penalty Software Update

Estimated Tax Underpayment Penalty Software Update

A software update was released on March 29, 2023, that affects the calculation of the estimated tax underpayment penalty on Form 2210. The calculation now includes federal income tax withheld for the estimated tax underpayment penalty (line 1b of the Form 2210 Worksheet, WK2210), as was the case in prior years. This change will not cause the calculated penalty to increase, but it will decrease the penalty on certain returns that had W-2 or Form 1099 withholding.

The IRS is automatically refunding overpayments, so no further action is required by you or your clients. Please refrain from amending or superseding any previously filed returns as this will cause unnecessary delays for your clients. An updated Form 8879 is not needed for previously filed returns.