Calculator for Interest and Penalties

[S T]

Can anyone refer me to an online calculator for Late Pay, Late File and Interest?

Thanks

Sandy

[taxea]

irs.gov search interest

[Gene V]

Here is one that I Google.

https://www.irscalculators.com/irs-penalty-calculator.php

[Lion]

Also, see what's already within your tax prep software.

[S T]

Thanks!

Tax Software is weak on the Interest and Penalties, in particular the States

I have used (trial) the irscalculators, easy to use, and seems accurate and you can change scenarios/dates, however, will not calculate States.

Found Time Value Tax Interest - will calculate States and other IRS penalties, so will more than likely go with that

Sandy

[geekgirldany]

Sandy, this is not online but is the software I use to calculate penalties and interest:

https://www.timevalue.com/taxinterest-products

The upfront price is $198 and renewals are $99. I am glad I got it as it gives clients a idea of what to expect.

[Rapid Robert]

Tax Software is weak on the Interest and Penalties, in particular the States

Maybe YOUR software is weak, do you buy the "cheap" brand, the one where they provide a lot of phone support in lieu of enhancing their software? :-)

There are well-known professional tax software packages out there which do indeed calculate state interest and penalties along with federal, included in the base software.

As you have discovered, no one seems to provide a truly free calculator for this. You could always build your own spreadsheet, wouldn't be too hard, since there are date functions in excel to calculate days elapsed.

[Rapid Robert]

it gives clients a idea of what to expect.

Instead of just "giving them an idea", my software not only calculates the penalties, but will include them in the refund/balance due calculation, putting the info at the bottom of Form 1040 page 2 just as the IRS expects. This can be suppressed, of course, if taxpayer prefers to get an IRS letter and have to go through the payment process all over again.

[JON]

Ultra Tax user

I had two refunds on penalties for clients. Ultra Tax had calculated the first (2210 only) at $1,028 and they refunded him around $436 and the second Ultra had calculated at around $700 and he received $125. They sent me the notice and on both the penalty was calculated in detail by dates. For the time period 9/30/16 to 1/31/17 no charge. I asked Ultra if there was a change that they and I were not aware of? They said no. I pointed out to both clients the line I thought was done wrong by the IRS and they chuckled. Could it have been a blow by the IRS computers???

[Rapid Robert]

I had two refunds on penalties for clients. Ultra Tax had calculated the first (2210 only)
For the time period 9/30/16 to 1/31/17 no charge.

The original question was about FTF and FTP penalties, which are pretty straightforward to calculate. There are a lot of ways a 2210 amount can be incorrect, such as incorrect amounts or dates for estimated payments, incorrect prior year amounts, or an annualized calculation done wrong. Form 2210 isn't really a penalty, it's a late payment interest charge. The dates of 9/30 and 1/31 would not be special for any 2210 calculation.