Need Help From CPA....

[KaneKungFu123]

i mailed in my estimated quartly payment about a week late. what do i do abut paying a penalty? is there a form to fill out? do they contact me with a bill? is it compunding as we speak?

[renodoc]

I'm a doctor, not a CPA damnit!

But, I believe the penalty will be calculated when you file next April. It shouldn't be very much, but they do ding you per day that it was late. As far as I know, you don't pay a penalty on the penalty.

[broiler]

The penalty stops compounding once you make the payment to get caught up. Since you paid only a week late, the penalty should only be a couple of dollars. The calculation is done on Form 2210 when you file your return for 2005 in 2006. If you don't fill out the form, the IRS will send you a bill for it, usually about 3-4 months after you file your return, and they will add on penalties and interest for not paying that balance with your tax return.