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santosldv
New Member

I have received a letter from the IRS with charges for failure to pay estimated taxes. Turbotax did not calculate any tax penalties for the year of 2018. Is this correct?

 
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2 Replies

I have received a letter from the IRS with charges for failure to pay estimated taxes. Turbotax did not calculate any tax penalties for the year of 2018. Is this correct?

TT calculates an estimated underpayment penalty based on your entries in the program  however the feds & state reserve the right to access a final underpayment penalty, late filing penalty or late paying penalty ( plus interest ) based on the info they have and when the balance due was actually paid.      https://www.irs.gov/individuals/understanding-your-cp14-notice


I have received a letter from the IRS with charges for failure to pay estimated taxes. Turbotax did not calculate any tax penalties for the year of 2018. Is this correct?

For instance,  if the 2017 program said you should pay $1000 a quarter and you transferred in that info to the 2018 program then the program calculates the penalty on the $1000 a quarter you were supposed to pay ... however if you did not pay those  amounts timely  and did not correct the program's assumption that you did (maybe you missed the april payment but caught up on the june payment ... or paid it all on one payment  in January) then the fed/state know this and made the correction and billed you accordingly.

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