When to pay an underpayment penalty?

[katiel1]

Turbo tax states that I owe an underpayment penalty of $39. Should I go ahead and pay this to the IRS or wait for the IRS to send me a notice of penalty?

[VolvoGirl · Accepted solution]

It's already added to the tax due or reduced a refund.  The penalty is in 1040 line 38.  You don't pay it separately.

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

[DoninGA]

The underpayment penalty is already reported on your From 1040 Line 38.  It would be included in the taxes owed or it will reduce your tax refund.  It is not a separate payment.