@tk01kj wrote:
My 2019 AGI is $109k, but I only withheld $7k in federal taxes, so I now owe $11k in federal taxes. Since this is the first time that I owe a tax penalty and that I received a tax refund for federal taxes withheld in 2018, am I able to waive this $250 penalty? Turbotax lets me waive the penalty on the web portal, but I am not sure if it is safe to do so for IRS.
IRS Tax Topic for underpayment penalty and waivers - https://www.irs.gov/taxtopics/tc306
The law allows the IRS to waive the penalty if:
- You didn't make a required payment because of a casualty event, disaster, or other unusual circumstance and it would be inequitable to impose the penalty, or
- You retired (after reaching age 62) or became disabled during the tax year or in the preceding tax year for which you should have made estimated payments, and the underpayment was due to reasonable cause and not willful neglect.
Refer to the Instructions for Form 2210 (PDF) for information on requesting a waiver of the estimated tax penalty.
Refer to Publication 505 for information about federally declared disaster areas.
