Yes. There are two types of penalties, late and underpayment. If you owe $1000 or more when filing, you are likely to have an underpayment penalty.
Here is an excerpt from the IRS -
"The United States income tax system is a
pay-as-you-go tax system, which means that you must pay income tax as you earn
or receive your income during the year. You can do this either through
withholding or by making estimated
tax payments. If you don't pay your tax or you
pay an insufficient amount of tax through withholding, you might also have to
pay estimated taxes. If you didn't pay enough tax throughout the year, either
through withholding or by making estimated tax payments, you may have to pay a
penalty for underpayment of estimated tax."
If you have been assessed an underpayment penalty,
then you can see if you may qualify for an exception to the penalty. You
may want to look into these exceptions if this is the first year you owed tax
and it is not a normal occurrence (i.e. you had one time income this year).
"Generally,
most taxpayers will avoid this penalty if they either owe less than $1,000 in
tax after subtracting their withholding and estimated tax payments, or if they
paid at least 90% of the tax for the current year or 100% of the tax shown on
the return for the prior year, whichever is smaller."
You can review the underpayment penalty
section.
You can perform a search within the program.
- Log in and click Take Me to
My Return
- Use the search icon in upper
right hand corner (magnifying glass icon)
- Search for “underpayment penalty”
- Click the “Jump to underpayment penalty” link
- This will take you directly
to the section of the program where you can review the underpayment
penalty and possibly qualify for an exception
