Should I pay a portion of the estimated penalties and interest when I mail my 2023, 2024, and 2025 1040 tomorrow?

[QRFMTOA]

When I mail my 2023, 2024, and 2025 tax returns to IRS tomorrow, my tax due will be $4,218, $1,337, and $913, respectively. Should I pay all, some, or none of the estimated penalties or interest with each return and check for the tax due?

[Bsch4477]

Send the total due with each return. Mail each return separately. 

[QRFMTOA]

How do I estimate penalties and interest?

[Bsch4477]

Let the IRS calculate that for you. Just pay what you owe. 

[QRFMTOA]

@Opus 17 added for reconfirmation of past advice...

Moments ago, when I attempted to send you my first PM in years, I received the message "You have reached the limit for number of private messages that you can send for now. Please try again later."

I really did not want to be controversial in public, so to speak, but I have respected your knowledge and judgment for YEARS and was not going to allow Intuit/TurboTax PM policy prevent me from reaching out to you. 

In May 2025, you recommended I pay only the tax due when I filed my 2022 return and let the IRS bill me for the penalties and interest, and gave me two very good reasons to follow your advice.

Well, I will be mailing my 2023, 2024, and 2025 returns with tax bills $4,218, $1,337, and $913, respectively, and wanted to know if your advice is still to not pay any of the estimated penalties or interest until I receive a bill from the IRS?

I do not understand why Intuit/TurboTax would not have let me ask you this my PM?

Q

[VolvoGirl · Accepted solution]

Just pay the tax due.   Any penalty on 1040 line 38 is included in the tax due on line 37.   If you have a penalty on 38 it is just an estimate.  Turbo Tax can not figure it accurately because they don't know exactly when the IRS or state will get your return and tax due payment.  It's very common and normal and expected for the IRS or state to bill you for more or send you a refund.

Be sure to mail each year in a separate envelope or the IRS will miss some.   

If Turbo Tax calculates a penalty on 1040 line 38…..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

[Opus 17 · Accepted solution]

@QRFMTOA 

I don't know anything about the workings of the board software.

In general, I would not pay any penalties with your tax returns, even older one.  I would wait for the penalty bill to arrive.  One reason is that turbotax can only estimate the penalty and you will almost always get a bill anyway.  The other reason is that you can ask for penalty abatement (reduction or forgiveness).  Without researching your older posts, I don't' recall the reason why you are filing amended returns with large tax owing.  But if this is the result of a single mistake that added up over the years, you would have an argument to reduce or eliminate all the penalties because it was a first-time mistake and you are voluntarily correcting those mistakes.  

https://www.irs.gov/payments/administrative-penalty-relief

Also note that you will owe interest on the late-paid taxes, and that can't be waived.  But the IRS also charges interest on the penalty, so if they remove or reduce the penalty they will also recalculate the interest. 

[QRFMTOA]

I was obviously confused by "Send the total due with each return." I thought "total due" was tax due, penalties due, and interest due. Hence my question for Opus 17 graciously answered by VolvoGirl.

[QRFMTOA]

Thanks, again!

[QRFMTOA]

Thanks, again and again and again!