I paid for 2021 taxes back in May (I filed an extension) through TurboTax. However, the payment wasn't applied to the 2021 tax year, and now I am facing penalties.

[VolvoGirl]

How did you pay it?  Your only proof of payment is your bank or credit card statement showing it coming out.  Turbo Tax does not pay it.  They only send your bank info to the IRS or state for them to pull it out of your account.

Didn't it show up on 1040 line 31, which comes from schedule 3 line 10?

[sarasaidman-gmai]

@VolvoGirl 

I paid it via my bank. It didn’t show up on that line/turbo tax didn’t include it. Do I file an amended return then? 

[VolvoGirl]

No.  The IRS should add it in for you.  And your bank statements show it came out?  Did you get a letter from the IRS about owing?

[VolvoGirl]

Wait, you paid it in May?  So you didn't pay it with the extension?  How did you pay it?  Did you pay it directly online at the IRS?  Did you pick 2021 1040 Balance due?  Maybe it got applied to 2022 as an estimated payment?

Do your remember filling out this screen?  It won't let me post it.  I'll try later.

[sarasaidman-gmai]

@VolvoGirl It looks like it may have applied for 2022. Is there a way to change that to 2021? 

[Carl]

I paid for 2021 taxes back in May (I filed an extension)

So you paid your taxes due, late. Any outstanding balance was due April 15th. Filing an extension only gives you more time to file. It does not give you more time to pay.

It looks like it may have applied for 2022. Is there a way to change that to 2021? 

Not that I'm aware of. If you need to confirm where the payment was applied, you can sign in and see your payment history at https://www.irs.gov/payments. If you don't mind being on hold for a "Loooooooooooooong, looooooooooong time" you can call the IRS at 1-800-829-1040 and "if" you can get to a human that physically resides in this country and their primary language is English, they may "or may not" be able to change things.

[fanfare]

IRS says:

The IRS charges a penalty for various reasons, including if you don’t:

• File your tax return on time
• Pay any tax you owe on time and in the right way

[sarasaidman-gmai]

@VolvoGirl  @Carl 

Ok, so I did include the additional payment on my initial return on form 1040, line 31. However, there was a payment processing issue that delayed the payment (I initially sent the payment when I filed for an extension), so it processed the payment on 5/10/22. I checked the IRS website, and it applied that payment to 2022. How can I correct this? Would responding to the letter I received from the IRS with an explanation and printout of my bank statement showing the payment to them sufficient? I would include a check with the remaining taxes due (minus the amount that processed on 5/10/22) and interest and penalties. 

[Mike9241]

There is no one standard procedure for correcting this. I would first recommend calling the IRS. if you paid by check get a copy because they'll probably want the tracking number on the back.  

if you can't get through then you'll have to respond by mail.  included an explanation and a copy of the check.

there is no guarantee either method will work. you may have to pay the full amount and then apply that payment to 2022 when filing. you'll likely get a second letter from the IRS as to what they have decided 

[fanfare]

Even if the May payment was applied to 2021 you would still have penalties and interest for late payment.

The IRS charges a penalty for various reasons, including if you don’t:

• File your tax return on time
• Pay any tax you owe on time and in the right way

End the aggravation and pay the IRS bill. you will get your extra money back on your 2022 tax return.

@sarasaidman-gmai