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FINAL DRAFT 10/1/24*246651*2024 M15NP, Additional Charge for Underpayment of Estimated TaxFor taxexempt organizations, cooperatives, homeowners associations and political organizations with unrelated.

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If we cannot approve your relief over the phone, you may request relief in writing with Form 843, Claim for Refund and Request for Abatement. To reduce or remove an estimated tax penalty, see: Underpayment of Estimated Tax by Individuals Penalty.

Estimated tax payment safe harbor details The IRS will not charge you an underpayment penalty if: You pay at least 90% of the tax you owe for the current year, or 100% of the tax you owed for the previous tax year, or. You owe less than $1,000 in tax after subtracting withholdings and credits.

5% of the amount due: From the original due date of your tax return. After applying any payments and credits made, on or before the original due date of your tax return, for each month or part of a month unpaid.

The underpayment penalty is calculated by multiplying how much tax you owed for each quarter by the interest rate for that quarter. This quarter (October through December), the underpayment penalty interest rate is 8%. The rate will decrease for the first quarter of 2025 (January through March), dropping to 7%.

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).

You can request First Time Abate for a penalty even if you haven't fully paid the tax on your return. However, the Failure to Pay Penalty will continue to increase until you pay the tax in full.

Interest and/or penalties paid to the IRS are not deductible on your tax return.

The law allows the IRS to waive the penalty if: You didn't make a required payment because of a casualty event, disaster, or other unusual circumstance and it would be inequitable to impose the penalty, or.

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© Copyright 1997-2025
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Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
DMCA Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
All Forms
Search all Forms
Industries
Forms in Spanish
Localized Forms
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
1-877-389-0141
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232