Dear Turbo Tax Professionals,
For my 2024 tax returns, the total federal tax liability due per the tax software on Free Tax USA was not reflective of the total tax liability on my tax returns. I received a notice in the mail that stated I owed interest and penalty. I filed for a tax extension, but it is my understanding that only extends time to file, not exempt the tax filer from being subjected to interest and penalties, based on my understanding. This is the 2nd time in my tax filing history I paid an exorbitant amount of taxes as a mixed earner (W-2/1099; most recently filed my LLC in December 2024 with no income to report as of now). The first time I paid for a previous tax return 6 years ago (2019 tax year) in 2024. Please advise how interest and penalties are calculated and assessed and strategies for eliminating or reducing interest and penalties, when filing a tax return extension, considering most small businesses and corporations tend to file after the 4/15 tax deadline.
Regards,
Rarity [removed]
