There is no mechanism in the VA state interview to remove the underpayment penalty based on taxpayer death. VA Department of Revenue states in this link:
"Waiver of Penalty
If extenuating circumstances kept you from filing your return or paying your tax on time, you can ask us to forgive penalties. Examples include illness or death of the taxpayer or tax preparer, destruction of records by fire, flood or natural disaster, or other unusual situations that reasonably kept you from filing or paying on time.
To request a waiver, write to us with the details of your case, and any documentation that supports your claim. For penalty amounts over $2,000, file an offer in compromise."
You should contact the revenue office (contact info) to get guidance on the waiver process. You may have to print/mail the VA return with a request for waiver/supporting documentation.
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