In the case of an individual, if the tax liability after certain credits and after subtracting federal withholding is more than $1,000, then a penalty for the underpayment of taxes is applicable. Penalties are figured separately for each of the four payment periods. Form 2210 is used to calculate the underpayment penalty. There are exceptions and waivers available that can be used to minimize or alleviate the penalty. Speak to your local CPA about the exceptions and waivers to minimize your penalty due. There are similar estimate payment requirements and penalty ramifications for corporations.
Interested in more Late Filing Questions?
- What are the IRS Underpayment Rates for 2013
- How is the IRS late filing penalty interest calculated ?
- Penalties and interest for paying and filing taxes after the due date
- Late penalty if expecting a refund and have not filed my tax return and the deadline has passed ?
- Is the tax return considered timely filed if received on the day it was postmarked or the day the IRS received it ?