The failure to pay penalty applies if you don’t pay the tax when due. The failure to pay penalty is 0.5% of the unpaid taxes for each month or part of a month the tax remains unpaid. The penalty won’t exceed 25% of your unpaid taxes.
The IRS charges interest on penalties as well. The date from which they begin to charge interest on the failure to pay would be the date that that the tax return was due, which in this case is April 15, 2024. The current underpayment rate, which has been the same for Quarter 2 and 3, and 4, which begins October 1, 2024 is 8%.
Turbo Tax will not calculate the failure to pay penalty, and as a consequence will not calculate the interest. The IRS most likely will send you a bill after the tax return is processed.
Thank you for the opportunity to answer your questions @carolgb22
All the best,
Marc T.
TurboTax Live Tax Expert
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