Penalty and Interest Due

[Jiggers]

I want to be sure that I am estimating the penalty and interest due on a tax return.

I estimated no balance due on the extension.

Client brings in additional information that results in $800.00 tax due.

Payment will be made by April 30, 2009.

The Penalty is 0.5% (.005) per month X $800.00 = $ 4.00

The Interest is 4.0% X $800.00 for 15 days = $ 1.32

This is just to give the client an estimate of what to expect.

[ChEAr$]

One way to do it

I want to be sure that I am estimating the penalty and interest due on a tax return.

I estimated no balance due on the extension.

Client brings in additional information that results in $800.00 tax due.

Payment will be made by April 30, 2009.

The Penalty is 0.5% (.005) per month X $800.00 = $ 4.00

The Interest is 4.0% X $800.00 for 15 days = $ 1.32

This is just to give the client an estimate of what to expect.

Is have him file a paper return, enclose a check for 805$ and with footnote bottom of
page 2 indicate the 4 and 1 $ amounts. Case closed.