Challenge 2210 Penalty

[S T]

How long - if there is a time period-- do we have to Challenge/ correct the 2210 Penalty Assesment on a 2011 Return issued around May 2012.

Just received from T/P correction for a 2011 Return and I can minimize by about
$100 or so?

Yes I know is it worth it from the standpoint of my time - but would like to create a little Goodwill on this account - as they opened a profitable s/e business and I have now also been on board as they are growing and am being paid for light accounting work.

Thanks,

Sandy

[appelman]

Are you amending the return?

Not quite sure what you mean by a correction. If you are amending, it "should" be automatic, particularly if you mention it in the narrative. Or do you mean a corrected 2210? In any case, I'd think you would have the usual three years from filing date, although in the latter case, I'm not sure how you'd go about it. You might still have to file a 1040X.

[S T]

No amendment - just using options other than short method on form 2210 to reduce what IRS assessed and deducted from refund.

I don't think there is a place on the 1040X to change the 2210 penalty -- is there??

Thanks

Sandy

[taxea]

No amendment - just using options other than short method on form 2210 to reduce what IRS assessed and deducted from refund.

I don't think there is a place on the 1040X to change the 2210 penalty -- is there??

Thanks

Sandy

Wouldn't a 1040X cause a change in the penalty automatically?

[appelman]

My advice:

File the 1040X, showing no change in income or tax, attach the revised 2210, and explain in the narrative what you are doing.