If I’m getting money refunded, why would I owe an IRS underpayment penalty?
The IRS calculates underpayment penalties separately for each of the four periods of the year. This means you can end up owing a penalty for an earlier payment period even if you paid enough later in the year to make up for it. To avoid this, and the need to complete Form 2210, you must make accurate estimated payments for the tax year by these dates:
- April 15
- June 15
- Sept. 15
- Jan. 15
If your income changed throughout the year, you could lower or eliminate one or more estimated payments. To do so, use the annualized income installment method on Form 2210.
Here's a list of tax documents you'll need to file this year's return. Get ready to file your taxes with H&R Block.
Did you receive IRS Letter 3289? Learn more about letter 3289 and how to handle it with help from the tax experts at H&R Block.
Think it's too late to make a difference on this year's tax return? Think again! Learn how to maximize tax deductions and increase your refund with H&R Block.
Does your business have unpaid payroll tax? Read the IRS definition of a Trust Fund Recovery Penalty (TFRP) and get insight from the experts at H&R Block.