Question

Due to a disability, Marlene did not make her estimated tax payments on time. She would like to request a waiver of the penalty for underpayment of estimated tax from the IRS. What should she do under this circumstance?

A) Marlene should pay the penalty without requesting a waiver.

B) Marlene should ignore the situation; the IRS will not penalize her.

C) Marlene should submit a written request to the IRS, explaining the circumstances and requesting a waiver of the penalty.

D) Marlene should consult with a tax professional and follow their advice.

Answer 1

Marlene should submit a written request to the IRS for a waiver of the penalty, explaining her disability circumstances. Using IRS Form 2210 and including appropriate documentation is essential. Consulting a tax professional could also aid in this process.

Step-by-step explanation:

If Marlene is seeking to request a waiver of the penalty for underpayment of estimated tax, she should pursue option C) by submitting a written request to the IRS, explaining her circumstances and asking for a waiver of the penalty. The IRS Form 2210, 'Underpayment of Estimated Tax by Individuals, Estates, and Trusts', provides an opportunity to request such a waiver in specific situations, including disability or other reasonable cause. Marlene should provide details regarding her disability and its impact on her ability to make timely payments. She should ensure to include any relevant documentation that supports her claim. In addition, consulting with a tax professional may be beneficial to ensure the request is formulated correctly and increases the likelihood of a favorable outcome.