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Video instructions and help with filling out and completing Fill Form 8815 Penalties

Instructions and Help about Fill Form 8815 Penalties

Thank you for your interest in diem ice interest net software let's take a look at one of its many features interest net gives users the ability to set up and calculate a variety of IRS penalties in this video we will look at the estimated payment penalties these penalties are accessible from the navigation bars penalties group upon selecting the estimated payment option you will be prompted to create a new data file if you have not already done so click yes and type the name you wish to give your data file then click the Save icon select the designated area you wish to save your file and click Save upon creating the data file a default tax module will have already been added to the module list at the top of the screen since this module was automatically added to the system the Edit module screen will automatically be displayed as well this is where the user can set the defining parameters of the tax module use the available controls on the screen to select the parameters for the module such as jurisdiction tax type interest rate table and tax period you may also edit the description and tax ID if desired in this case we will setup a module for form 1040 return for the year 2022 for geo taxpayer note that unlike some of the other penalties in Interest net where the defining parameters for the module have little or no effect on the results and are for presentation purposes only for the estimated payment penalties it is crucial to at least properly establish the tax type and period of the module these parameters establish whether the penalty will be the corporate or individual variety form 20 to 20 or 20 to 10 respectively as well as the due date of the return once the parameters have been set click the Save icon now that the module has been established choose estimated payment from the navigation bar the estimated payment screen is generally laid out based on the actual IRS form for the year in question in this case form 20 to 10 for year 2022 one exception to this is the top left section of the screen this section is where some basic penalty detail is displayed and entered certain elements such as the return year and due date will be based on the tax type and period of the module and cannot be changed other elements may or may not be applicable such as date of death for mere and settings for some options related to the form twenty to ten penalty such as non-resident alien farmer fishermen and no prior return the user should become familiar with how these settings will impact the penalty calculation by reviewing the applicable IRS publications before using them in the top right of the screen is the information in part one of the form twenty to ten which is for determining the required annual payment and it's exactly the same as the actual IRS form in this example we will input the following data amounts line one $35,000 this is the tax amount for 2022 on line three we will input refundable tax credit of $750 finally on line eight we will enter numb out for the annual payment based on the prior year's tax of $40,000 note that the screen will automatically take these in any other required inputs into consideration and determine the amount for line nine which is the required annual payment in this case thirty thousand eight hundred twenty five dollars in part two the screen are some additional checkboxes the user must fill in based on the conditions of the return in question some of these are purely informational and some have effects on the calculations such as item C which designates that the taxpayer is using the annualized income installment method the bottom section of the screen is part four of the form and it shows the quarterly installment eights amounts and payments or credits for each period it then lists the remaining lines on the form used to determine the amount of under payment or overpayment for each quarter the installment dates and amounts will already be listed based on the module parameters and the data listed in part one of the form in this example we'll manually enter estimated payments for line 19 for the following amounts first period $8,000 second period $7,000 third period $7,000 and the last period $8,500 once this is done click the process button to compute the results the penalty results screen will appear at the bottom this lists any existing penalty transactions if selected on the Left which is not the case in this example on the right it lists the penalty transactions that would be added to the module data based on the computed results since we were just doing a calculation now manually enter data this is not applicable either so we will go right to the penalty report by clicking the report button the penalty report shows the details of the penalty calculation the user may also click the form button which in addition to the calculation report also runs the completed IRS 2210 form as mentioned earlier there's another method to define the penalty detail that is based on having actual tax module transaction data in the module you are working in in an estimated payments penalty there are many data inputs such as withholding taxes in part 1 and estimated payments in part 4 that can be filled in by selecting transactions from the data already in the tax module this will be covered in a different tutorial video this concludes our look at the estimated payments penalty feature please see our other videos for more features of the interest net software.

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