tax payment plan

[rkplw]

We owed taxes this year, and was more than expected.  So when i finished the turbo tax program i chose the payment plan.  but i did not realize their would be a finance charge penalty to pay of almost 30%.  so we wrote a check for the whole amount, and sent it with the assigned payment voucher (#1) to the address on the voucher on 4-14-25.  The bank shows the check was cashed on 4-29-25.  recently we have received past-due letters to both my wife and I for payment and current penalty.  According to the website, it doesn't show as paid.  we called the IRS and were really given no help. Claiming we did something in error. Anyway the IRS seems to have our money but is not applying it to our account.  what to do?

[VolvoGirl]

Oh no,  did you send it in with the first 1040ES slip?  The four 1040ES are prepayments for next year 2025 so you don't owe so much next year.  You needed to send in the payment on the one 1040-V voucher.    So next year when you do your tax return you will need to enter the  #1 estimated payment.  Maybe you can talk to the IRS and see if they will switch it to the 2024 tax due.  

[VolvoGirl]

So you need to pay the current 2024 Tax Due.  You can pay the IRS directly at
https://www.irs.gov/payments

Be sure to pick 1040 balance due for 2024.  

[Opus 17]

You have to look at the dates carefully.  If you owed for 2024, Turbotax will assume that you will also owe for 2025, and will print out 2025 vouchers for estimated payments.  These are optional (you could also reduce what you owe by making online payments or by increasing your paycheck withholding). 

Unfortunately, if you made a payment with a paper slip dated 2025, that's how it will be applied.  You still owe for 2024 and you can't "move" the payment in the IRS system.  You still have to pay for 2024.  However, be sure to report your 2025 payment in your 2025 tax software so you get credit for it, it will either reduce the tax you eventually owe or it will come back as a tax refund next year.

If you paid an application fee for a payment plan, that is unfortunately non-refundable.  

You can pay your 2024 taxes online, no paper voucher is needed, just be sure to select "2024" from the menu.   You can pay in full or make partial payments.  If you can pay in full in 4 months or less, it will usually not be worth starting a payment plan, just pay as much as you can now, and pay the rest as soon as you can.  If it will take more than 4 months to pay in full, you might want a payment plan, but you should apply directly on the IRS web site, not through your software.

https://www.irs.gov/payments/payment-plans-installment-agreements