In 2020, my W2 federal withholding was $22k+, greater than my 2017, 2018 and 2019 federal tax liability combined. However, my 2020 tax liability from short term capital gains exceeded the refund I would've gotten from the withholding. Since I filed an extension and paid the liability in Oct 2021 instead of May 2021, the $1096 was a late penalty due to the short term capital gains.
I already used up the first time penalty abatement relief for 2019 tax year (got a $135 underwithholding penalty refunded in 2023). According to this article, the IRS 2020 relief seems to be separate from first time abatement.
https://www.irs.gov/newsroom/irs-provides-penalty-relief-for-2020-and-2021-tax-returns-help-paying-t...
Would I qualify for another sort of late penalty relief since I wasn't aware at the time that I had so much short term capital gains in 2020 that greatly increased my tax liability beyond the withholding?
