Does the IRS assess an additional penalty if I choose to have the IRS calculate my underpayment penalty on Form 2210?

[LudwigVan_fan]

No, they shouldn't assess a penalty for computing the underpayment penalty F2210

However, I would recommend you attempt to do the F2210 in TT.  If you had a increase in income in the later part of the year, timing of estimated payments, etc., you can input those in TT and it might reduce the underpayment penalty.

Otherwise IRS will prorate things evenly throughout the year.

[Periwinkle65]

No. There should be no additional penalty. 

[LenaH · Accepted solution]

No. TurboTax calculates the underpayment penalty and interest based on IRS guidelines, however, it is only an estimate based upon the date you state that you will file and pay your return. If you pay your tax due without the underpayment penalty, you will receive a notice asking you to pay the penalty within 6 to 8 weeks.

The IRS calculates the amount of the Underpayment of Estimated Tax by Individuals Penalty based on the tax shown on your original return that you filed on or before the due date. The tax shown on the return is your total tax minus your total refundable credits.

The IRS calculates the penalty based on:

• The amount of the underpayment
• The period when the underpayment was due and underpaid
• The interest rate for underpayments that the IRS publishes quarterly

[gjgogol]

nope, income was even throughout the year but unfortunately I did forget to take additional taxes out during 2021. I did have TT figure it out but I wanted to talk to IRS about my situation and apparently the only way to contact them for this is to receive a notice. So i want to have the IRS send me a notice with their phone number on it to discuss but I was concerned that in the meantime, I would be charged additional money for not paying the penalty along with the taxes I owe.