Hurricane Harvey penalty relief - receiving IRS notices

Many of our individual tax clients are starting to receive IRS notices in which the IRS is reducing the underpayment penalties calculated by Lacerte since we live in a county designated a Hurricane Harvey disaster area.  (The underpayment penalty from August 27 through the end of the year is abated). Although clients like to receive a refund, it makes us look bad since we were calculating higher penalties than what the IRS calculated.  How can we fix this on future returns?  We can't find any option in the 2210 penalty screen for adjusting the penalty based on Hurricane Harvey, and we don't want to manually calculate the penalty for every client.  We did call Lacerte "customer service" but they were unable to understand the issue and kept referring to casualty losses.

No answers have been posted

More Actions

People come to Accountants Community for help and answers—we want to let them know that we're here to listen and share our knowledge. We do that with the style and format of our responses. Here are five guidelines:

  1. Keep it conversational. When answering questions, write like you speak. Imagine you're explaining something to a trusted friend, using simple, everyday language. Avoid jargon and technical terms when possible. When no other word will do, explain technical terms in plain English.
  2. Be clear and state the answer right up front. Ask yourself what specific information the person really needs and then provide it. Stick to the topic and avoid unnecessary details. Break information down into a numbered or bulleted list and highlight the most important details in bold.
  3. Be concise. Aim for no more than two short sentences in a paragraph, and try to keep paragraphs to two lines. A wall of text can look intimidating and many won't read it, so break it up. It's okay to link to other resources for more details, but avoid giving answers that contain little more than a link.
  4. Be a good listener. When people post very general questions, take a second to try to understand what they're really looking for. Then, provide a response that guides them to the best possible outcome.
  5. Be encouraging and positive. Look for ways to eliminate uncertainty by anticipating people's concerns. Make it apparent that we really like helping them achieve positive outcomes.

Select a file to attach: