I used TurboTax's free extension service (in order to have more time to file my federal return), but my IRS.gov account is now showing an "extension payment" fee of $10. This has never happened before. Why is it happening now?
Neither TurboTax nor the IRS charges a fee for extensions. However, if you elected to pay $10 with your extension TO the IRS, it would show on your transcript as a payment credited to your account.
TurboTax doesn't have any access to information contained in your IRS account and any questions about it would need to be directed to the IRS.
Information on ways to contact the IRS can be found HERE.
Thanks for the quick reply. However, I didn't elect to pay anything with the extension. I'm owed a refund for tax year 2024 and didn't need to make any payments. Do you know why the IRS put that payment in? Is it possible that this was some kind of computer or other error on their part? Or is it that TurboTax wrongly included a payment of some kind in with my free extension submission?
If you didn't provide bank information in the Easy Extension program, TurboTax wouldn't have any way to send a payment with your extension for you.
It may be some sort of marker that the IRS uses (though I don't see any such thing in my own account, and I have also filed an extension.)
Unfortunately, we don't have any way to know and I can't think of any reason.
I'd give it some time perhaps to settle out, and then reach out to the IRS if you are still concerned.
Thanks for the added info. Yes, I'm hoping it disappears, though I also wonder--since this has never happened to me before, and I've been doing this for years--if it might have something to do with how many IRS employees have suddenly been forced out.
Did you Revise an existing payment plan (Installment Agreement) or reinstate after default? If so, there is a $10 fee for that; you can get it removed if you qualify.
See the IRS Payment Plan page under What does it cost?
Get more information on other payment agreement options and fees.
Thanks. But no, I've never had a payment plan and I haven't revised or reinstated anything. I've never owed taxes after a return--I only ever receive tax refunds. That's part of why I find the fee so confusing. Is it possible that TurboTax suggested that I was seeking the tax return extension as part of such a revision? This also seems unlikely. I simply made my Q1 estimated tax payment, as I always do as a self-employed person, via my IRS.gov account. I did this around the same time as I filed for the 2024 tax return extension via TurboTax.