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Merlo, Accountant
Category: Tax
Satisfied Customers: 9783
Experience:  25+ years tax consulting. Specializing in returns for US citizens living abroad
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2002 Fed Inc Tax 1040 not filed. Tax owed of $861. How much

Resolved Question:

2002 Fed Inc Tax 1040 not filed. Tax owed of $861. How much would interest, late filing, and penalties amount to?
Submitted: 8 years ago.
Category: Tax
Expert:  Merlo replied 8 years ago.
Hello bewildered,

There are two penalties which would be assessed plus interest.

1. Late filing penalty - which is 5% per month on the tax due, not to exeed 25% of the total tax.

2. Late payment penalty - which is one half of one percent per month, again not to exceed 25% of the total tax due.

3. Interest is compounded daily and the interest rate changes quarterly, so it would be impossible to give you an exact figure on the interest. But a ballpark would be to figure it at 6% per year.

So your late filing penalty would be $215.

Your late payment penalty will also be $215.

Your interest should be approximately $500.

When you send your return in to the IRS, they will calculate the exact amount of penalties and interest that are due and will send you a notice of what the total amount is with those penalties and interest.

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Thank you bewildered.

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