Question

Question re penalty fee for underpaying fed taxes

Forum|Forum|5 years ago
March 22, 2021
1 reply
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I used TurboTax to file my 2020 income taxes online, and received a confirmation from TurboTax that my Federal Return was accepted by the IRS more than a month ago.

Because I underpaid my tax for 2020, I included -- in my payment to the IRS -- the penalty fee, which was determined by TurboTax based on the date of my filing (more than a month ago). Of course, the penalty increases the later you file, which is one reason I filed so early.

I am a little worried because the IRS has yet to debit my bank account for my payment/penalty. Does this mean when the IRS finally gets around to collecting, my penalty fee will have increased? And when can I expect the IRS to debit? Hopefully, it will be by April 15, right?

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M

MayaD

The IRS is postponing the tax filing deadline to May 17 from April 15. The underpayment penalty won't increase as long as you pay the amount by the due date which is 05/17/2021.

If you selected debit from your bank account, the IRS will do the debit when they process your return information usually 1-3 weeks for e-file and 3-4 weeks if mailed in. You won't get penalized as long as you filed and you selected May 17th (or earlier) as your payment date.

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