@chamberlainke wrote:
Perhaps I wasn't clear. I did not pay any amount on Jan 15th because I planned to file by January 31st as I am allowed to do by law without penalty. If I cannot file by January 31st then in not making my January 15th payment I will be considered late and I will owe penalty. If I make the payment now and file on February 12th, I will be considered late and I will owe penalty. AFAIK the law did not change, the only thing that changed is that the IRS is just not ready to accept returns on January 31st, is this correct?
I suggest making an estimated payment now. There are so many last minute tax law changes this year, and the IRS is backlogged from making stimulus payments, that we really have no idea when the IRS will actually start processing returns, or when Turbotax will have all the forms ready (because that requires IRS review and approval).
The late payment penalty is 1/2% of what you owe, plus interest at a variable rate of about 3% APR. So pay now to minimize the payment, and then take your time to file to make sure everything is proper and correct with both your own facts, with Turbotax, and with the IRS.
Then, if you are assessed a penalty, you can request a waiver under several different IRS policies. There is a first-time abatement, if you never paid a penalty before, and there is also reasonable cause abatement, and I think this would qualify, since you were prepared to file and the IRS wasn't ready.
https://www.irs.gov/businesses/small-businesses-self-employed/penalty-relief-due-to-first-time-penal...
https://www.irs.gov/businesses/small-businesses-self-employed/penalty-relief
The only way to file "on time" is to mail your return, registered mail, by January 31, and include your check, but I would have no confidence that the IRS will get the return, or process it timely. If you can e-file, that seems much preferable, even if you have to wait.
