Isn't penalty on our business income included in my Federal taxes by TURBOTAX? Should I pay the penalty of $132.32 which IRS asking for with a Notice CP14?

New Member

Jun 7, 2019 5:59:28 PM

I do not like IRS NOTICE. I can pay more in advance with taxes. How can I do so?

Level 15

Jun 7, 2019 5:59:29 PM

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, 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

New Member

Jun 7, 2019 5:59:31 PM

I do not like IRS NOTICE. I can pay more in advance with taxes. How can I do so?

Level 15

Jun 7, 2019 5:59:32 PM

You can send in more with the quarterly estimated payments. And It's very common and normal and expected for the IRS or state to bill you for more penalty or interest.

Level 15

Jun 7, 2019 5:59:33 PM

What are estimated taxes?

https://ttlc.intuit.com/replies/3301588

Do I need to make estimated tax payments to the IRS?

PAYING ESTIMATES
For SE self employment tax - if you have a net profit (after expenses) of $400 or more you will pay 15.3% for 2015  SE Tax on 92.35% of your net profit in addition to your regular income tax on it. So if you have other income like W2 income your extra business income might put you into a higher tax bracket.

You must make quarterly estimated tax payments for the current tax year (or next year) if both of the following apply:
- 1. You expect to owe at least $1,000 in tax for the current tax year, after subtracting your withholding and credits.

- 2. You expect your withholding and credits to be less than the smaller of:
    90% of the tax to be shown on your current year’s tax return, or
  100% of the tax shown on your prior year’s tax return. (Your prior year tax return must cover all 12 months.)

Why sign in to the Community?

Isn't penalty on our business income included in my Federal taxes by TURBOTAX? Should I pay the penalty of $132.32 which IRS asking for with a Notice CP14?