Skip to main content
Level 2
June 6, 2019
Question

We got a letter saying we did not pay estimated taxes and owe a late fee, but we did pay - taken out of our bank account after filing an extension. please advise.

  • June 6, 2019
  • 5 replies
  • 22 views
No text available

5 replies

Critter
Level 15
June 6, 2019

Ok ... the underpayment penalty which is being charged  is applied if you don't pay your taxes quarterly.  This is applied even if you pay the entire amount with the return or extension in April. If you had not paid the total balance due with the extension then you could have ALSO been charged with a failure to pay penalty. 

Rainman12
Alumni - Champ
Alumni - Champ
June 6, 2019
Restated: Payment in full is Not sufficient; Payment must also be Timely, proportionate to when income was realized.