u/Guava-Initiative

Curious as to other preparers procedure on issuing interest and penalty for under withholding built into the tax bill.

There has been a couple clients in the last year or two that I factored the amounts into their tax due and they received a letter reducing the penalty and refunding them the amount.

I’d rather include it and it be reduced by the IRS then have them receive a notice they owe an additional amount. But just had this happen and the client reached out and now I am thinking they are interpreting it as I made a mistake.

Thoughts??