I have to pay a $3 underpayment penalty, as my taxes owed was >$1000. I choose "pay it now", but only taxes owed was paid, not the penalty. How do I pay IRS this fee?

[michelle-hirawad]

Turbotax notified me that I had an underpayment penalty of $3 because my taxes owed was greater than $1000.  I wanted to pay this penalty along with the taxes owed in one transaction and picked the "pay it now" option on Turbotax.  When funds were withdrawn from my checking account, only my taxes owed was withdrawn and not the $3 penalty.  How do I pay the IRS the $3 penalty fee?  I want to pay this fee online if possible.

[DDollar · Accepted solution]

If you owe a penalty, the IRS will calculate it and bill you.  As long as you pay it by the date they indicate in their letter to you there will not be any additional tax or interest.  I suggest you just wait for the IRS in case they calculate some different based upon the timing of your tax payments.

[michelle-hirawad]

Thank you for the quick response.

[cwie]

How long does it take for the IRS to calculate the penalty and bill you? 

[WendyN2]

It depends - I've had one client recently (last year) who had omitted to report his 401K withdrawal on his 2015 tax return and he just received a letter last March, 2020. However, I've also seen instances where folks get a letter in August for the tax year just passed. If you already know to expect a letter and know why, it is in your best interest to file an amended as soon as the IRS fully processes your return. For any years that you are required to mail in the amended return, be sure to send it out Certified Mail / Return Receipt Requested as this is the only proof you will have that you've filed it, when you mailed it, and the fact that the IRS has received it (they will sign the "green card" and then the USPS mails this back to you - this is the "return receipt" part).