What this notice is about We reduced your penalty for failure to pay estimated taxes because it exceeded the maximum amount that could be charged. What you need to do Review your notice. It will explain how much you owe and how to pay it. If you have a balance due, pay the amount you owe by the due date on your notice. If you’re unable to pay your full balance right now, explore alternative payment options. If you’re owed a refund, you don’t have to do anything at this time. You may want to Review Underpayment of estimated tax by individuals penalty for more information about estimated tax penalties. Frequently asked questions How do I know if enough is being withheld from my income? (added Nov. 6, 2024) The IRS Tax Withholding Estimator can help you determine if you have the right amount of tax withheld from your paycheck. Checking your withholding can help protect against having too little tax withheld and facing an unexpected tax bill or penalty at tax time next year. How much am I required to pre-pay in order to avoid a penalty? (added Nov. 6, 2024) Generally, most taxpayers will avoid this penalty if they owe less than $1,000 in tax after filing their return or if they paid at least 90% of the tax for the current year, or 100% of the tax shown on the return for the prior year, whichever is less. There are special rules for farmers and fishermen and Higher Income Taxpayers. If you are an individual, estate, or trust and at least two-thirds of your gross income is from farming or fishing, use Form 2210-F, Underpayment of Estimated Tax by Farmers and Fishermen to see if you owe a penalty for underpaying your estimated tax. Qualifying farmers and fishermen are required to pre-pay only two-thirds (66.67%) of their tax, or 100% of the tax shown on the return for the prior year, whichever is less. See Farmers and Fishermen in About Publication 505, Tax Withholding and Estimated Tax for more information. If your adjusted gross income (AGI) is more than $150,000 ($75,000 if married filing separately) you are required to pre-pay 90% of the tax for the current year or 110% of the tax shown of the return for the prior year, whichever is less. If I have to make estimated tax payments, when are they due? (added Nov. 6, 2024) Estimated tax payments are generally due on April 15, June 15, and September 15 of the tax year, and on January 15 of the next year. For filers with a taxable year that ends in a month other than December, the payments are due on the 15th day of the 4th, 6th, and 9th months of the taxable year, and on the 15th day of the first month of the following taxable year. If I am owed a refund, when can I expect to receive it? (added Nov. 6, 2024) You should receive your refund in 4-6 weeks. Visit Where’s My Refund? to see your personalized refund date as soon as the IRS processes your tax return and approves your refund. Tips for next year Make timely estimated tax payments, if necessary, to ensure that you pre-pay enough tax through a combination of withholding and estimated tax payments. See the worksheet in Form 1040-ES, Estimated Tax for Individuals, for more details on who must pay estimated tax. Reference tools Publication 1, Your Rights as a Taxpayer Notice Topic 651 Notice Topic 653 Full list of tax forms and instructions Need help? You can authorize someone to represent you before the IRS or inspect and/or receive confidential tax information. You may be eligible for free help from the Taxpayer Advocate Service (TAS). See if you qualify for help from a Low Income Taxpayer Clinic. You can request a copy of your notice or letter in Braille or large print. If you can’t find what you need online, call the telephone number on your notice or letter.
