What should I do about an underpayment penalty?

Forum|Forum|6 years ago
February 4, 2020
2 replies
20 views

I am being assessed an underpayment penalty for 2018 taxes (AL). I did not file through TurboTax, but went directly through the state's website. I received a refund by the end of January last year. Is this underpayment assessment an error?

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Stephends2010

Level 2

Write the income Tax department of your state and ask them to send a detail account of why they are assessing you. Most of us are afraid to ask and the states and feds are more than happy to answer when asked. Explain what you know as fact re: refund and your last state return.

JohnW152

Level 15

I agree wholeheartedly with Stephends2010’s advice.

After you detail your facts, you might also ask for an abatement of the penalty and any interest that you might owe and, if you’re experiencing any financial hardship, you might describe that, as well.