CP14 Notice Because TurboTax Did Not Calculate Underpayment of Tax Penalty

[canwhitfield]

Just received a CP14 notice from IRS.  Notice states "when you don't pay enough taxes due for the year with your quarterly estimated tax payments, we charge a penalty for not properly estimating your tax."

Question and comment:  I e-filed and my taxes were accepted on 13 July 2020.  Did not do quarterly estimated tax payments, but instead paid the entire tax amount due all at once when I filed.  How come TurboTax did not catch the tax penalty for underpayment before I filed?  I have used TurboTax in the past and the program did catch the underpayment of tax penalty.  It did not this year.  If the software claims 100% accuracy then is the IRS wrong for the CP14 notice stating my failure to pay proper estimated tax?

[Critter]

The underpayment penalty calculation is not covered under the accuracy guarantee. The estimated underpayment penalty is calculated based upon the users data entries. The user can also skip the penalty section if they choose and the program cannot stop you from doing so. The IRS always has the option to compute an underpayment penalty based on when you actually pay the taxes due and off the information that they have on the payments you have already made and the timing of those payments.

[VolvoGirl]

Is there an amount on your 1040 line 24?

Even if Turbo Tax calculates a penalty on line 24 it is just an estimate.  It's common and expected for the IRS to send a bill for more or even send a refund.  It is determined by when the IRS actually gets your tax due payment which Turbo Tax won't know.

If you want to see it in the program....

It's under

Federal or Personal (for Home & Business Desktop)

Other Tax Situations

Additional Tax Payments

Underpayment Penalties - Click the Start or update button

[canwhitfield]

Thanks for the quick replies.  Did go back into the TurboTax Program (Federal Taxes/Other Tax Situations) and did find where I erred with the Q&A regarding last years tax liability (2018 Form 2210).  Appreciate the help and how quickly I was able to find/fix the problem (on my end).