Underpayment - Pay now or wait for IRS bill?

Forum|Forum|6 years ago
May 3, 2020
5 replies
55 views

I need to pay an underpayment penalty. I have 2 options:

1. Pay underpayment penalty with my tax return and file 2210

2. Wait for the IRS to send me a bill for underpayment penalty and do not file 2210

Does it really matter what option I choose?

Best answer by Opus 17

That’s probably the fastest and most secure way.

Opus 17

Level 15

If you pay now, it will almost certainly be for a slightly different amount than the IRS wants, resulting in either a small refund check being mailed to you or a bill for a small additional amount being sent to you. The formula is complex, and the IRS will often interpret facts differently than the tax software. On the other hand, if you wait for the bill, there will be additional interest making the penalty slightly larger. I personally would wait for the bill because once you pay that amount, you are done with it.

avipulcoAuthor

Level 2

Thank you for your insight. I will follow your suggestion and wait for the IRS bill. Once I receive it, should I make the payment via the IRS website?