We have been assessed a penalty for underpayment of taxes during 2023. I checked yes to making payment with taxes due, but I didn’t see that amount coming out. Pay it?

[stacyedowning101]

When and how are we paying it now to avoid further interest computation?

[DoninGA]

The Underpayment penalty is on your Form 1040 Line 38.  It will be included in the taxes owed or it will reduce the tax refund.

[VolvoGirl]

The estimated underpayment penalty is on 1040 line 38.  It either reduced your refund or added to a tax due.  You don't pay it separately.  It's already included.  Don't know what you were clicking YES to?  

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

[Vanessa A]

The best way to make the payment right now is to pay  pay electronically by going to this IRS Direct Pay Website and creating an account and making a payment.  This is a good way to do it because it also allows you a way to track payments you make through the year or at anytime.

When you say you didn't see it coming out, do you mean that you submitted the payment through TurboTax?  If so, did you select todays date?  If not, you can call the U.S. Treasury Financial Agent at 888-353-4537 to cancel the payment and then set up a new payment that comes out today.

How do I change my IRS payment