Our income was seasonal. If we use the annualized method, do we have to attach Form 2220 even if the IRS could compute the penalty?
I run a U.S. corporation that earns most of its revenue in the holiday season. The early quarters were weak and the fourth quarter was enormous, so the standard installment pattern does not reflect the business at all. Our CPA says Form 2220 may be needed because we want to annualize income rather than let the IRS compute any underpayment automatically.
I want to know whether choosing the annualized-income method itself creates a filing requirement for Form 2220, even if the penalty outcome might be small or zero after the computation is done.
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