I use HR Block tax software for federal income tax. For year 2022 software computed my underpayment penalty and I sent total tax owed to IRS.
2-3 months later I got a check in mail from Treasury. First thought was it was fake phishing check. But it cashed fine at my bank. Another few weeks later I received a letter from IRS saying I had overpaid the penalty!
I guess HRB tax software has bugs.
#8 I use H&R Block...
Is the penalty of 8% per year?
What if say last few years it was 3% and you did not pay, would they calculate the whole amount at 8% or 3% for the past years and then 8% for current year?
3% of amount + 3% of amount + 8% amount.
Just ah... asking.