Question

Travis did not make his estimated tax payments on time due to a disability. He would like to request a waiver of the penalty for underpayment of estimated tax from the IRS. What should he do in this situation?

Answer 1

Answer:

Taking into account that the options for this question are:

A. He should not enter the penalty on Form 1040, and must attach documentation that shows his date of disability.

B. He should write DISABLED on Form 1040 instead of the penalty amount.

C. He must allow the IRS to calculate his penalty, then request a refund using Form 2210.

D. He should file Form 2210 with his tax return and include documentation that shows his date of disability.

The correct answer is:  D. He should file Form 2210 with his tax return and include documentation that shows his date of disability.

Explanation:

Many taxpayers can apply for an exemption from the fine. A taxpayer applying for a full waiver may choose to have the penalty determined by the IRS, while a taxpayer applying for a partial waiver must measure the penalty on Form 2210. The taxpayer will add Form 2210 and a statement to his tax return detailing why the estimated tax requirements have not been met and the waiver duration.