What this notice is about We reduced or removed the penalty for underpayment of estimated tax reported on your tax return. What you need to do Review the account information in your notice. If there are discrepancies between our records and your records, and it appears that we removed or reduced your penalty in error, please return the refund with your explanation. Frequently asked questions Why did you reduce or remove the penalty? We reduced or eliminated the penalty because, according to our calculation, the penalty reported on your return is greater than the penalty actually due. Our calculation is based on information in our records at the time your return was processed. If your address is within a geographical area that was declared a federal disaster area, the reduction may be the result of an automatic waiver we applied. What should I do if I disagree with the correction? Call the toll free number listed in the top right corner of your notice. Explain to the assistor why you disagree with our correction. If we agree with your explanation, the assistor will tell you what to do next. The notice says that I will receive a refund, but I haven't received it yet. When will I receive the refund? Before we can issue a refund, we are required to collect (offset) any other taxes you may owe. Additionally, your refund may be offset to pay child support or state taxes you owe, or to pay any other debts you legally owe that we are required to collect. We also might not mail your refund if you have not filed all of the returns you are required to file. To check the status of your refund you may call the toll-free number listed in the top right corner of your notice. Helpful information Publication 505, Tax Withholding and Estimated Tax Form 2210 Instructions, Underpayment of Estimated Tax by Individuals, Estates, and Trusts Reference Tools Publication 1, Your Rights as a Taxpayer Publication 17, Your Federal Income Tax Full list of tax forms and instructions Need Help? You can authorize someone to contact the IRS on your behalf. See if you qualify for help from a Low Income Taxpayer Clinic. If you can’t find what you need online, call the IRS number at the top of your notice or letter.