Can I avoid penalties on inflated estimated income?

[allenmankind]

One-time influx of income from sale of business in 2021. Is there any way to avoid the auto-generated, inflated estimated taxes generated with return? What is the penalty and ignore the estimated taxes, since I will not have the inflated income in 2022 anyway?

[JulieS]

Yes, you can ignore the estimated taxes since the extra income will not happen again next year. The fact that the program created the vouchers for you doesn't create an obligation to use them. 

You can also check the box to let the IRS figure your penalty, because they probably won't bother with it. When your income is much higher than the previous year, the penalty is generally waived.

The penalty for underpayment is 3% to 5% of the amount that should have been paid. If you end up owing less than $1000, there is no penalty.