Get Underpayment Of Estimated Tax By Individuals And

The failure-to-pay penalty is one-half of one percent for each month, or part of a month, up to a maximum of 25%, of the amount of tax that remains unpaid from the due date of the return until the tax is paid in full.

Interest Due on Overdue Amounts Based on Date Overdue DateInterest RateDaily Interest Factor07/01/21 to 12/31/213%0.00008201/01/21 to 06/30/213%0.00008207/01/20 to 12/31/205%0.00013701/01/20 to 06/30/205%0.0001375 more rows

IRC 6621 Table of Underpayment Rates Date(a)(2) Underpayment Rates(c)(1) Underpayment RatesApril 1 – June 30, 20237%9%January 1 – March 31, 20237%9%October 1 - December 31, 20226%8%July 1 – September 30, 20225%7%133 more rows

Current rates 7%Personal income tax under- and overpayments7%Corporation underpayment7%Estimate penalties5%Corporation overpayments

WASHINGTON — The Internal Revenue Service today announced that interest rates will remain the same for the calendar quarter beginning Jan. 1, 2024. For individuals, the rate for overpayments and underpayments will be 8% per year, compounded daily.

The estimated tax penalty is generally not abatable, and to get relief from this penalty, you need to request an exclusion when filing your tax return. You can request an exclusion by filing Form 2210 (Underpayment of Estimated Tax by Individuals, Estates, and Trusts).

Form 2210, titled "Underpayment of Estimated Tax by Individuals, Estates, and Trusts," is a tool the IRS uses to determine whether taxpayers have paid enough tax throughout the year via withholding or estimated tax payments.

The Underpayment of Estimated Tax by Individuals Penalty applies to individuals, estates and trusts if you don't pay enough estimated tax on your income or you pay it late. The penalty may apply even if we owe you a refund.