Hi @MonikaK1 ,
Re: 'If you receive a notice for the underpayment penalty, you will not be charged interest on the amount shown for the penalty if you pay the amount owed in full on or before the "pay by" '
No problem with that at all. Because that is exactly the way I wished it to happen.
But, in the light of what I have already done (e-filing 1 x 2024 original tax return showing the $251 penalty included in the total amount owed, followed by 1 x amended 2024 return e-filed 3 weeks after the 1st and showing no tax difference in total tax owed, but showing the amount WITHOUT the $251 penalty), the key question is:
IS IT OK if I paid the total amount due MINUS $251 (on April 4th 2025) without being charged additional interest after April 15th 2025? In the context of the "damage" already made by TurboTax (but which I tried to mitigate via the amended 2024 tax return), will IRS see a $251 as outstanding balance (even if it's for something different than the tax owed itself, i.e. for a "penalty" not a tax remaining to be paid)? And then charge me interest for not having it paid ALSO before the April 15th 2025 tax season deadline?
OR, will IRS recognize that $251 is something different? And which they will have to FIRST understand what is it about, and probably through the help of the 2nd e-filing of mine, understand much quicker that it's about an ALLEGED penalty? And then IRS will either deem it correct to charge or let it pass? And if not letting it "pass", at least can I hope that they will recognize it as a separate chargeable thing, bill me separately (via a letter sent by MAIL) and then - as you suggested - imply some form of separate time grace period for such expected bill, without interest incurring within such period?
My main fear right now is this: By excluding the $251 penalty from my yesterday's (April 4th 2025) payment, shortly after April 15th 2025, I might expect a bill from IRS telling me that I did not pay everything that was expected of me to be paid, and that I owe not only $251 but an additional interest (which will probably be non-negligible due to their letter and bill "conveniently (to them)" being mailed out probably long enough after April 15 2025 (i.e. one month after)?
And that amended e-filed return of mine, I'm not sure if it is helpful in any way.
While you DID imply throughout your last post that Form X1040 is only for amending resulting TAX values, technically speaking, the outcome of my amended return no longer shows any suggested penalty, which is exactly what I have expected from the first, original return e-filed. Yes, the TAX value owed did NOT change at all. BUT, the TOTAL AMOUNT OWED has now changed, for better. It shows it without the pesky $251 penalty. Will this amended e-filed return take precedence and show in "My Account" on IRS web site, the balance without the penalty? And which I have already paid yesterday? Or it will continue to show the original balance, the one prior to the amendment?
Thank you again.
