Discussion:Looking for the Ruling...

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Discussion Forum Index --> Basic Tax Questions --> Looking for the Ruling...
Discussion Forum Index --> Tax Questions --> Looking for the Ruling...

Harry Boscoe (talk|edits) said:

22 October 2009
Can someone point me towards the IRS ruling that the Underestimated Tax Penalty - Form 2210 - can't be recomputed on a later amended return. Thanks.

I have dutifully tried The Yellow Box of Search but I get either Everything or Nothing. Operator Error, I'm sure, but I don't have time to learn new tricks...

Refrigpbrerator.

Kevinh5 (talk|edits) said:

22 October 2009
I'm busy backpeddling right now. When I get to where I've come from, I'll let you know.



Kid: "I'd like to buy a round trip ticket, please."

Greyhound Bus Agent: "To where?"

Kid: "Why to here, of course!"

Trillium (talk|edits) said:

22 October 2009
Can't help you with the ruling but here's a paragraph from the instructions:
Return. In these instructions, “return” refers to your original return. However, an amended return is considered the original return if it is filed by the due date (including extensions) of the original return. Also, a joint return that replaces previously filed separate returns is considered the original return.

Wait for D&T, though, he's seen it in action (here).

Death&Taxes (talk|edits) said:

22 October 2009
http://www.legalbitstream.com/scripts/isyswebext.dll?op=get&uri=/isysquery/irl27d0/1/doc

Rev Ruling 83-36

Found it given by Riley in Discussion: Penalty Abatement

SCCPA (talk|edits) said:

22 October 2009
See Sec. 6654 IRC. The estimated tax penalty is based in part on the required annual payment defined in Sec. 6654(d)(1)(B)


B) Required annual payment For purposes of subparagraph (A), the term required annual payment means the lesser of -

i) 90 percent of the tax shown on the return for the taxable year (or, if no return is filed, 90 percent of the tax for such year), or


(ii) 100 percent of the tax shown on the return of the individual for the preceding taxable year. Clause (ii) shall not apply if the preceding taxable year was not a taxable year of 12 months or if the individual did not file a return for such preceding taxable year.''


Note the wording refers to the tax shown on the return, not the tax required to be shown on the return.

Death&Taxes (talk|edits) said:

22 October 2009
And this raises a rather Harry-like question:

Do you ask because you are amending the current return and the penalty could be changed, or did you amend the prior year return and found the estimated tax requirement for the current year had changed?

SCCPA (talk|edits) said:

22 October 2009
Sorry D&T - I had it on the screen while you were posting.

RoyDaleOne (talk|edits) said:

22 October 2009
"For this purpose, the taxpayer's original return is the last return, including an amended return, filed on or before the due date (including extensions) of the return for the taxable year. Rev. Rul. 83-36, 1983-1 C.B. 358. An amended return filed after the due date is not taken into account. The tax shown on the return is not recalculated to the correct tax liability, even where the original return was fraudulent. Schwarzkopf v. Commissioner, 246 F.2d 731 (3d Cir. 1957)"

Death&Taxes (talk|edits) said:

22 October 2009
And that is what Riley said in the earlier discussion, too, Roy! Great minds think alike!

Harry Boscoe (talk|edits) said:

23 October 2009
Thankstoallwhohelpedmehere. Drinks on me.

Especially, thanks and a tip of the hat to D&T who not only coughed up the Rev Rul and a discussion of it and a link to it, but even anticipated that it was the *preceding* year's return that was being amended and - get this! - referred to that issue as "a rather Harry-like question."

Goldang, that's awesome. Almost like as if it's possible that maybe .. I've arrived.

If it's not PBR, I'm not drinking it. Meet you in the kitchen.

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