Quote History Originally Posted By wildearp:
Saw you post in another thread, if you can spare a minute.
@SiVisPacem
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The form you are most likely referring to is IRS Form 2210. It can take a while to complete, but I'd be shocked if it took four hours-unless you have no records, whatsoever, and you are having to recreate them as you go.
One part of the form (Schedule AI) allows you to do what's called annualize your income in an attempt to lower the penalties. In a nut shell, this is helpful if your income fluctuates significantly during the year because of things like your business is highly seasonal, you got bonuses late in the year, or you sold a lot of stocks at a significant gain at a particular point during the year. Basically, you tell the IRS how much of your annual income was earned prior to each of the three estimated payment dates during the calendar year and by the end of the calendar year (April 15th, June 15th, September 15th, and then December 31st). If your income was earned in a particular quarter (especially 4th quarter), it'd be difficult to estimate tax liability in April, June, and September, so the IRS may cut you some slack.
I don't know about H&R Block's software, as I've never used it, but I know our software (I work for TurboTax) allows you to complete the Form 2210 as part of the filing process (for TurboTax Online users, it's in the Other Tax Situations section of the Federal return, after Deductions and Credits).
I wouldn't seek out the help of an EA or CPA simply to complete the 2210. It should be able to be completed within the software. If you can't get help from their customer service folks, just remember, TurboTax Live Assisted has people such as myself who are available to help walk you through it while on the phone with you when you use our software.
As I said in another thread, the IRS is kind of like the mob when it comes to withholding and estimated payments. A loanshark won't wait until April for payments on a debt you started accruing the previous January. If you don't pay them enough as the year progresses they'll take a baseball bat to your knees. Similarly, the IRS wants some of their money either every payday or every few months. If they don't get enough, they hit you with their version of a baseball bat: underwithholding penalties and interest.
FYI: If you get hit with certain penalties, but haven't had any for the preceding three years, you MAY qualify for First Time Penalty Abatement, which is the IRS version of a mulligan, or do over. IF you qualify, they'll abate, or waive, the penalties and any interest accruing form those penalties. there are rules to follow, though, such as you have to wait for the tax burden to have been paid before asking for FTA, otherwise, the next day you get a new failure to Pay Penalty and you've shot your abatement wad already.