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BoBailey
Level 1

Paying estimated penalty with tax filing

I opted to pay an underpayment penalty with my tax filing rather than waiting for the IRS to bill me for it. Will the IRS still bill me for it and then apply my payment to it? I want to request for a first time penalty abatement but it looks like I have to wait for the tax notice so I have something to respond to with my request. It does not seem possible to make my request immediately right after my tax filing.

1 Best answer

Accepted Solutions
HelenC12
Expert Alumni

Paying estimated penalty with tax filing

Yes, the IRS will send you a notice regarding the underpayment penalty. regardless of the TurboTax underpayment calculation done by TurboTax.

  • Also, yes, the IRS will apply your TurboTax calculated underpayment penalty.
  • Once you get the IRS notice, you'll be able to inquire about the first time penalty abatement. 

You may qualify for administrative relief from penalties for failing to file a tax return, pay on time, and/or to deposit taxes when due under the Service's First Time Penalty Abatement policy if the following are true:

  • You didn’t previously have to file a return or you have no penalties for the 3 tax years prior to the tax year in which you received a penalty.
  • You filed all currently required returns or filed an extension of time to file.
  • You have paid, or arranged to pay, any tax due.
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1 Reply
HelenC12
Expert Alumni

Paying estimated penalty with tax filing

Yes, the IRS will send you a notice regarding the underpayment penalty. regardless of the TurboTax underpayment calculation done by TurboTax.

  • Also, yes, the IRS will apply your TurboTax calculated underpayment penalty.
  • Once you get the IRS notice, you'll be able to inquire about the first time penalty abatement. 

You may qualify for administrative relief from penalties for failing to file a tax return, pay on time, and/or to deposit taxes when due under the Service's First Time Penalty Abatement policy if the following are true:

  • You didn’t previously have to file a return or you have no penalties for the 3 tax years prior to the tax year in which you received a penalty.
  • You filed all currently required returns or filed an extension of time to file.
  • You have paid, or arranged to pay, any tax due.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
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