Underpayment Penalty Payment Question

[minhtuanta]

So my wife and I got 2 letters from IRS for underpayment penalty (1 addressing me, 1 addressing my wife). We filed married jointly. The amounts in both letters are the same ($200). My question is do we pay $200 or each pay $200 (totally $400)? Can I pay at www.irs.gov/payments? When I logged on to the website, it shows my 2021 balance is unavailable. I clicked on "Make Payment" and there are multiple options:

- Pay 2021 Income Tax

- Pay Balance in Full - Unavailable at this time

- Pay Towards Your Balance

- Amended Return

- Estimated Tax

- Extension

- Proposed Tax Assessment

Which one should I use? I'm leaning towards "Pay Towards Your Balance"

[JulieS · Accepted solution]

No, you are both seeing the total of $200 in penalty. They send two letters to make you both know about it.

Yes, "Pay Towards Your Balance" is the best choice in this situation. 

[minhtuanta]

Thank you for your reply. My friend suggested to choose "Pay 2021 Income Tax" as he reason it's part of my 2021 income tax. Is there a problem if I selected that option as IRS will receive the payment either way?

[JohnW152]

As JulieS suggested, Pay Towards Your Balance would probably have been your best option.

That said, Pay 2021 Income Tax should suffice.  

If you should receive another letter relating to the underpayment penalty, just explain to the IRS in a letter the same thing you’re explaining to us – that you went online to pay the penalty, no options were specific to the penalty, so you chose one that seemed correct.  Heck – you can even point them to this conversation showing your due diligence in trying to make the payment correctly.

They’ll be able to match up the payment then.

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[minhtuanta]

Thanks for the advice!