Letter from IRS saying I owe $111.44 for not paying enough quarterly tax payments when I dont pay quarterly tax payments and pay the total amount due?

[VolvoGirl]

Did you have a tax due on your return?  If you owe too much you should have been paying in extra estimates.  If you owe too much you owe a penalty for not paying in enough during the year.

If you do not pay enough tax, you may have to pay a penalty for underpayment of estimated tax. Even if you are getting a refund you can still owe a penalty for not paying in evenly during the year.  Generally, most taxpayers will avoid this penalty if they owe less than $1,000 in tax after subtracting their withholdings and credits, 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. It is included in your tax due or reduces your refund.

FAQ <a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/1899474-form-2210-or-form-2210-f-underpayment-of-estimated-tax">ht...>

You might be able to eliminate it or at least reduce it.  You can go to Federal Taxes tab or Personal tab, under Other Tax Situations and select Start by the Underpayment Penalties. You will answer a series of questions that may reduce or eliminate the penalty. Or you can elect to have the IRS figure the penalty for you.  It's form 2210.

It's under
Federal or Personal (for Home & Business Desktop)
Other Tax Situations
Additional Tax Payments
Underpayment Penalties - Click the Start or update button

[Anonymous]

if this is the first time having to pay underestimated tax penalty, if you write a nice letter to the IRS, provide a reason such as thought had enough paid in to covered required minimum tax payments, say that you'll take steps to avoid penalty in future,  and request that penalties be abated.  the IRS might do just that. your risk is possible interest charge for paying later if IRS denies your request.  Usually, IRS honors first time requests.