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.
When does tax reform take effect? The new tax law passed in 2017, with most provisions going into effect in tax year 2018. Learn more with the experts at H&R Block.
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.
Learn what happens when you have unfiled tax returns and how to fix the issue. Get the IRS definition and more insight from the experts at H&R Block.