I am self-employed as a consultant for over 10 years. I pay an estimated tax quarterly in the normal situation. My income is not fixed. It depends on if the customer has a project for me or not.
Unfortunately, I didn't get any project until September this year. I didn't pay any estimated tax as well until September because I didn't have any income. After I received the consultant fee in September, I immediately paid the estimated tax and then paid another estimated tax on 31 December.
I paid two estimated taxes, and each time the amounts were much more than I usually pay in a normal year because I knew I needed to pay all the tax in two payments but not in 4 payments as usual. The total estimated tax I paid this year is much more than I paid last year. Because I work harder, unexpectedly I earn more than in regular years. This results in I still owe the IRS some tax.
This is the first time I got the Penalty/Interest of the tax. I don't think I should get this penalty/interest. I didn't delay the tax payment. My bank statements will support my arguments. I didn't underestimate the tax on purpose. I already paid much more estimated tax this year than last year.
How can I handle this Penalty/Interest? Where/How can I complain/correct this?
I am using the TurboTax Home&Biz desktop edition.
