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.
Learn more about form CP59 and how to handle an IRS CP59 notice with help from the tax experts at H&R Block.
What are the tax brackets for U.S. taxes? Review income tax brackets based on your filing status as well as taxable income and understand how they apply to you.
If you filed a tax return and owed taxes, but didn’t pay them, you probably have received your first notice from the IRS: the CP14, Balance Due.
Your request for a reduced installment agreement user fee was denied. Learn how to address letter 4213C with help from the tax experts at H&R Block.