Underpayment penalty and divorced taxpayers

[A A Del Turco, CPA]

I have a new client divorced in 2022. For 2022 she's of course filing single. She purchased a primary residence with her husband in 2021 and sold it 450 days after purchase - so no exemption.
The sale of the principal residence resulted in a gain and without the prior year tax to determine if she qualifies for safe harbor the 2210 is calculating an underpayment penalty. Can someone point me in the direction of some promulgation on what the rules are in determining how much I should populate as last year's tax on the 2210?

[rbynaker]

She may be eligible for a partial maximum exclusion due to unforeseen circumstances. See if the regs help:

https://www.law.cornell.edu/cfr/text/26/1.121-3

In particular (e)(2)(iii)(D).

To your original question, you would need to know what her share of the total tax on the 2021 was, and use that in the penalty calculation.

[rbynaker]

If you still need the PY tax, see examples in the regs in (e) of 1.6654-2:

https://www.law.cornell.edu/cfr/text/26/1.6654-2#e

Rick

[Rapid Robert]

See Form 2210, Part II, Box E.

" If you file a separate return for 2022, but you filed a joint return with your spouse for 2021, your 2021 tax is your share of the tax on the joint return."

[A A Del Turco, CPA]

Thank you both, very helpful. I was throwing about for key words to search on and was coming up with nothing useful.