I paid what I owe the IRS via the vouchers but the IRS says I still owe with interest

[dtkayser09]

I paid what I owe the IRS via the vouchers but the IRS says I still owe with interest. What do I need to do to make sure the IRS is going to show what I have already paid to them? 

[VolvoGirl · Accepted solution]

What vouchers did you send?   It should have been a 1040V voucher.  Not the 1040ES.  Your tax due is a Single 1040 V voucher unless you entered your bank account for the IRS to pull it out.

The 4 quarterly 1040ES slips are estimated payments for NEXT year do you don't owe so much again.  So you payment might have been applied to next year.

If you did pay the tax due then send the IRS a copy of your check or bank statement showing the payment coming out.  

if you still need to pay,  Pay the IRS directly at

Https://www.irs.gov/payments

[SundayInSalem]

Did you pay on time? If you did not, IRS will charge interest for a late payment.

You can contact IRS at 1-800-829-1040 if you believe the interest calculation is wrong.

[Mike9241]

you use the term vouchers so it's unclear exactly what forms you submitted with payment.  2021 1040-V?  2021 1040-ES?, 2022 1040-ES

if the payments have cleared, then respond back with the notice, a short letter signed and dated saying enclosed are copies of the checks I used to pay my 2021 balance due. mal using a method where you get proof of delivery.

if they haven't cleared you are sort of in limbo. the checks may have gotten lost in the mail or the IRS may have them but hasn't opened the envelope. how long ago did you mail it?

In the future, I highly recommend using the IRS online payment system. you get to specify the date of withdrawal and after submitting you can immediately print a receipt with complete tracking details or use a mailing service where you get proof of delivery. 

if the payment hasn't cleared, you do have the option of stopping payment and submitting payment with the notice. you could include a letter stating what you have done - original payment mailed on xx/xx/xxxx but not cashed. the IRS could still hit you with penalties and interest.

there is an option to select direct debit on your 1040 to pay any balance due. use this only if you timely file your return (no extension) otherwise if you file after the original due date you'll be subject to late payment penalties.  I also suggest only using this if you e-file. some Op's have posted they got penalty notices from the IRS for late payment even though they mailed their return timely. also remember not to duplicate this by sending in a 1040-V with payment or using the IRS payment website.

[VolvoGirl · Accepted solution]

If you did send in a payment with a 1040ES slip be sure to remember to enter it next year to get credit for it.  So keep track of it.   Put it in your tax file.  

The 1040ES are estimates for next year. The 1040ES quarterly estimated tax payments DO NOT get sent to the IRS or state with your return. They are optional to pay. Turbo Tax is very conservative and doesn't want you to owe too much next year. They might have printed out if you got a one time large income this year. Like if you took a IRA or 401K distribution. You can ignore them. You might want to adjust your withholding at work so you won't owe too much next year.

[dtkayser09]

Thank you that was really helpful. I did pay the 1040ES, so that means they should account for those taxes paid when I do my 2022 taxes, correct? 

[VolvoGirl]

Yes.  You will need to manually enter any 1040ES payments into your return next year.   Post back next year if you need help entering it.   

[dtkayser09]

@VolvoGirl You are a lifesaver! Thank you!