How to Make an IRS Penalty Disappear (Legally!)

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If you’ve ever missed an estimated tax payment, and your amounts owed were on the larger side, penalties can really add up fast.

But there’s a workaround the IRS actually allows.

It requires:

– Having a retirement plan that permits a 60-day rollover- Having funds available to repay the rollover

Steps:

Step 1: You withdraw from your IRA, have your custodian withhold and send that amount to the IRS for taxes.

Step 2: Repay your IRA within 60 days using other funds.

Result:

No estimated tax penalty — the IRS treats your withholding as if it were paid evenly throughout the year.

No taxes or early withdrawal penalties — because you repaid it under the 60-day rule.

100% legit and legal!

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