CP30 estimated tax penalty

DoubleD123
DoubleD123 Member Posts: 1 Newcomer
in After you file

I received a letter saying I owed underpaid tax. why didn't free tax USA not catch this for me while I did my taxes ? will I receive a letter every year that I now owe ?

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  • KristineS
    KristineS FreeTaxUSA Agent Posts: 259

    Hi DoubleD123,

    Thanks for joining our Community and writing in with your question.

    The Notice CP30 can be both concerning and confusing. It is issued by the IRS for many taxpayers across the country at this time of year. In effect, the notice is stating since not enough tax was paid in during the year through paychecks or voluntary estimated tax payments, the IRS is charging a penalty, even if a balance due is paid in full by April 15th, and on rare occasion, even if there is a refund.

    FreeTaxUSA includes the opportunity for our customers to file Form 2210, Underpayment Penalty, with their tax returns to mitigate this letter.

    The form is located in the Miscellaneous section of the program. You may have answered 'no' to the question "Do you want to answer questions that may reduce or eliminate your underpayment penalty?" when the Underpayment Penalty (Form 2210) window was opened.

    We have several articles and threads in our Community you might like to read here, here, and here from January 2024 on this topic.

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