Lawsuit Settlement causing Estimated Tax Penalty

[dctt2]

Long story short, I was awarded a lawsuit settlement of $60,000 last year.  This was unexpected as I was the defendant in the litigation.  Once the plaintiff realized their mistake, they paid me $60K to not counter-sue provided some terms were met.  I agreed.

Turbotax wants to hit me with a $47 estimated tax penalty.  Not terrible but not great either.

When requesting the waiver, should I keep the words as brief as possible?  Also, what supporting documentation should I be attaching?  There were newspaper articles about the settlement, and even Fox News picked it up.  lol

[Cynthiad66]

You should request the waiver, if you feel qualified.  You can just explain the situation and if they feel it necessary to see proof the IRS will request it.  However, $47 is considered Diminimus by the IRS and  will most likely be approved without further investigation.

The law allows the IRS to waive the penalty if you didn't make a required payment because of a casualty event, disaster, or other unusual circumstance and it would be inequitable to impose the penalty,

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