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Level 2
posted May 10, 2021 3:39:31 PM

Last year I paid advanced tax on July 14th. Why did IRS charge me a penalty for late payment when I think July 14th was the due date for the 1st quarter of 2020.

Last year I paid advanced tax on July 14th. Why did IRS charge me a penalty for late payment when I think July 14th was the due date for the 1st quarter of 2020. Due to the pandemic, I thought they had extended the date last year.

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1 Best answer
Level 15
May 10, 2021 4:01:10 PM

you are correct as to the due date.  how did you make the payment?. if it was not postmarked by 7/15 it was late. if you did it through a 7/14 e-payment, then it was timely. perhaps the payment was not sufficient to cover 45% of 2020 tax or 50% of 2019 tax. both the first and second estimated tax payments were due 7/15/2020

 

 

 

3 Replies
Level 15
May 10, 2021 4:01:10 PM

you are correct as to the due date.  how did you make the payment?. if it was not postmarked by 7/15 it was late. if you did it through a 7/14 e-payment, then it was timely. perhaps the payment was not sufficient to cover 45% of 2020 tax or 50% of 2019 tax. both the first and second estimated tax payments were due 7/15/2020

 

 

 

Level 2
May 10, 2021 5:27:34 PM

Thanks Mike for your prompt response. It was debited from my bank account on 7/14 and it was about 70% of my total tax bill for 2020. I think I need to challenge their decision.

Level 2
May 11, 2021 9:25:55 AM

I just finished talking with an agent at Illinois Tax department and she said for IL, the date for estimated tax payment wasn't changed last year and hence I was charged. This is very strange, I thought I had read it had changed for IL too