If you have a balance due instead of a refund when you file your tax return, the IRS could assess a penalty.
The IRS calculates this penalty by first figuring out how much you should have paid each quarter. Then, it multiplies the difference between what you paid and what you should have paid by the underpayment rate for that period. The IRS determines that rate for each quarter of the year.
For 2022, the rates are:
- 3% for Quarter 1 (January-March), 4% for Quarter 2 (April-June), 5% for Quarter 3 (July-September), and 6% for Quarter 4 (October-December)
Click the link below for additional information regarding the form.
What is Form 2210
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