Extension filed on 2023 Federal return with refund due - will penalty be applied to 2024 estimated tax payments?
I need an extension to file my Federal 2023 taxes
I pay estimated tax quarterly, with next payment due April 15, 2024
I am due a 2023 refund, which I will apply to my 2024 Estimated Tax payments - but due to extension on filing Federal return, they will not be applied by April 15.
Will IRS charge apply interest/underpayment of estimated tax penalty in this case?
IRS will be in possession of my money by April 15, but I will not have directed it to 2024 estimated tax payment yet
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Yes, even if you file an extension you can apply your 2023 refund to 2024 taxes.
As you said the IRS already has the money, You just have to authorize them to do it.
To do this, log into your account.
Although you wont file until later in the year. The IRS has had the money since before April 18th, so it can be applied to your first quarter payment.
My question remains unanswered--
will the IRS apply an underpayment of estimated taxes penalty in this case?
I'm sorry, I wasn't clear.
No, you will not get an underpayment penalty for estimated taxes, provided you make all the payments for the proper amount due and timely.
As stated above:
"The IRS has had the money since before April 18th, so it can be applied to your first quarter payment."
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