The year 2020 has seen some very unusual circumstances and events—the Australian wildfires, the COVD-19 pandemic, the presence of murder hornets, a contentious presidential election—and the year is not over yet! Throughout this year, taxpayers may have missed estimated tax payments or underpaid their estimated taxes. This can have consequences come tax filing season next year. The year 2021 (which everyone hopes will be better than 2020) may already have certain types of tax penalties waiting for taxpayers.
Section 6654 Penalties, Generally
The Internal Revenue Service (“IRS”) may assess failure-to-pay-proper-estimated-tax penalties based on I.R.C. Section 6654. According to I.R.C. Section 6654(a):