We were assessed a fine for not enough taxes being paid throughout the year. However, I filled out my W-4 with 0 and my wife used 2. We have a son so it should’ve pulled out enough. Can they fine

[dcarolig]

Can they fine us even though we filled out our W-2 on the conservative side?

[MichaelMc · Accepted solution]

Yes, the IRS can impose civil penalties for being underpaid through withholding or estimated tax deposits.

However, even the IRS recognizes that the many tax changes that become effective in 2018 led to widespread confusion, and has provided some measure of relief to those taxpayers whose taxes were underpaid despite good faith efforts. The following article from The Journal of Accountancy explains the new IRS relief provisions:

https://www.journalofaccountancy.com/news/2019/mar/irs-relief-from-underpayment-penalty-201920862.ht...

[dcarolig]

That is excellent news. I paid 82% but have already sent the payment in for the penalty. Is there a way to receive a refund. I have looked online and cannot find anything on getting refunded for the payment.

[MichaelMc]

Yes. The IRS should automatically refund any overpayment. If you do not receive it within 60 days after the tax filing deadline, call the IRS at (800) 829-1040 and make inquiry about it.

[dcarolig]

Perfect.. Thank you so much for your help. Every little bit helps!