The penalty says "when you dont pay enough taxes due for the year with your quarterly estimated tax payments, we charge a pentaly for not properly estimating your tax." (internal revenue code section 6654)
You are being charged the penalty because you did not have enough tax deducted from your pay during the year. If you owed $1,000 or more when you filed your 2019 tax return, your total tax withheld for the year should have been at least 90% of the total tax on your return, or 100% of the tax on your 2018 tax return (110% if your 2018 AGI was over $150,000). If your withholding did not meet one of those requirements, you should have made up the difference by making quarterly estimated tax payments.
You can use the Tax Withholding Estimator on the IRS web site to make sure you are having enough tax withheld for 2020 and adjust your W-4 if necessary.
Sorry, I omitted the link for the IRS Tax Withholding Estimator when I first posted my reply. I have added it to the first reply in the forum. Here it is again.
Why doesn't TT tell me I owe late payments?
Is there a way to appeal this?
We received a small estate inheritance without advanced warning of course this increased our AGI
Ray
@rlmiller999 See your own question that you posted in a separate thread.
I received a notice from IRS that I have a penalty for "Failure to pay proper estimated tax"
thanks for the reply but,,,,,
You didn't say why TT didnt tell me this?"
Is there a way to appeal the penalty? I had no way to know I would recieve this estate (IRA) payment from an inheritence? How to appeal?
Thanks,
Ray
@rlmiller999 Please keep all the discussion in one place - in the thread that you started with your own question. I answered your questions there. If you have any more follow-up questions, post them in your own thread, not here.