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Since underwithholding penalty is daily interest, paying the amount due stops the penalty from increasing.

You referred to W-4s. It sounds like you did not make estimated payments. Witholding is assumed to be paid evenly across the quarters, regardless of how it was actually paid. If you had made estimated payments and your income was uneven during the year, it probably would be worth your time to work through the 2210. Given your situation, you can let the IRS calculate the penalty. The IRS will send a letter for the amount due.

Debra
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