Total capital gain distributions from a mutual fund in a taxable account

[sgordhandas]

Hi

I have a significant Total capital gain distribution from a mutual fund in a taxable account that came in on one transaction on the last day of 2021.  This is causing me to owe significant taxes at the federal and state levels + penalties.  Other than annualizing my income feature in Turbotax, are there any other steps I can take to ease the pain?

[JulieS · Accepted solution]

No, you just have the two options at this point, annualize the income and hope it reduces your penalty a lot, or you can let the IRS figure the penalty and then ask for the penalty to be waived after they bill you.