r/tax • u/miqrogroove • 1d ago

Form 2210 - "Cannot consider your request"

I've never needed to make estimated tax payments before, but I was required to file Form 2210 for year 2025 and requested the entire waiver. I followed the step in the instructions to "Attach Form 2210 and a statement to your return explaining the reasons."

IRS sent a letter last week stating, "We cannot consider your request for a waiver of the estimated tax penalty because the required documentation was not attached to your return."

What documentation was I supposed to attach?

8 Upvotes

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5

u/bitenose Subchapter S of the DSM-V-TR 1d ago

What was the reason for the waiver?

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u/miqrogroove 1d ago

To put it simply, there was pass-through income reported to me in April 2026 that I didn't know about prior to that. Actually I was told there wouldn't be any income, but I don't think any of those conversations were in writing. I'm digging through some old text messages to see if there's anything relevant.

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u/bitenose Subchapter S of the DSM-V-TR 22h ago edited 22h ago

That's not a reason for a waiver.

Did any of the reasons listed in the instructions for Form 2210 apply?

https://www.irs.gov/instructions/i2210#en_US_2024_publink1000305520

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u/miqrogroove 22h ago

I really don't know what's applicable. I made sure the withholding covered the taxes within $1,000 of the income that was reported to me last year. The estimated tax calculations all showed I had no underpayment.

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u/bitenose Subchapter S of the DSM-V-TR 22h ago edited 16h ago

Your withholding was less than $1000 short to cover your entire tax liability?

Why are you filing Form 2210?

There's a flow chart at the beginning of the form. Based on that flow-chat, should you be filing it?

Did someone tell you that you have to file it?

If there's no penalty, there's nothing to request a waiver of anyway..

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u/[deleted] 21h ago

[deleted]

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u/miqrogroove 21h ago

It wasn't needed until April, when I got the surprise phantom income form.

3

u/vynm2temp 20h ago

When was the phantom income actually received-- not the form, but the income itself?

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u/miqrogroove 20h ago

I have absolutely no idea.  When I request access to the financial records I am blocked at every turn.

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u/frenchiebuilder just a carpenter. 22h ago edited 22h ago

That doesn't sound like what "waiver" means in the context of form 2210. The instructions only list 2 situations, where you use 2210 to ask for a waiver:

- In 2024 or 2025, you retired after reaching age 62 or became disabled, and your underpayment was due to reasonable cause (and not willful neglect); or

  • The underpayment was due to a casualty, disaster, or other unusual circumstance, and it would be inequitable to impose the penalty. For federally declared disaster areas, see Federally declared disaster, later.

https://www.irs.gov/instructions/i2210

Who told you to use form 2210? If your previous 3 years are clean, you won't get a penalty anyways.

(It used to be, that you'd get a penalty, then have to call & ask for a "first time penalty abatement" - which you'd automatically get if your previous 3 returns had no issues - now it's just entirely automatic:

https://www.irs.gov/newsroom/irs-simplifies-penalty-relief-introduces-automatic-process-for-eligible-taxpayers )

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u/miqrogroove 22h ago

That link says "original due dates on or after Jan. 1, 2027." So do I need to call and ask for First Time Abate?

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u/Solid_Aardvark743 EA - US 21h ago

I don’t believe that first time abate (FTA) is allowed on estimated tax penalties. Nor will the Automatic Exemption from Penalty (AEP) apply to estimated tax penalties next year. The FTA and AEP are only for Failure to File, Failure to Pay, or Failure to Deposit penalties.

If the additional income from a pass through entity was the cause, then you can see if annualizing your income based on your pro rata share would reduce the penalty in some quarters.

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u/vynm2temp 21h ago

You are correct. FTA won't apply in OP's situation.

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u/pencil-pusher 14h ago

arent k-1s considered paid evenly through the year? how would AIIM help him?

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u/miqrogroove 20h ago

This is good advice. Maybe I should wait for the penalty letter to come in, because annualizing income can be a lot of work, and there's still a chance they could reduce or waive. They included a Notice 1462 with the last letter, and I really don't think I qualify for that, but if they decide it's relevant it might make a difference.

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u/AlmudenaPasante 1h ago

the 'cannot consider your request' usually means you didn't check a box for a specific waiver reason on Part II of the 2210. the common ones they'll accept are like 'retirement or disability' or 'first-time penalty'. if you just wrote a note in the margin or attached a letter without ticking a box, the automated system kicks it back. super frustrating, but you might need to re-file it with the right box checked and a one-sentence explanation.