do not want to have to ask my clients if they have health insurance coverage
and determine if the coverage is adequate under Obamacare. And I do not want to have to tell a client
that the fee for his or her 1040 has increased because I had to waste time
calculating his Obamacare penalty.
Whenever I prepare an income tax return with a balance due I do not automatically check to see if the client is subject to a penalty for underpayment of estimated taxes. If the IRS wants to charge the client this penalty let them do it themselves. If a client receives an IRS notice assessing a penalty for underpayment of estimated tax I will verify the IRS calculation and attempt to eliminate or reduce it via First-Time Penalty Abatement or by using one of the exception methods available on Form 2210. But I will never assess a client a tax penalty “upfront” - I leave it to the IRS.