Calculate IRS penalty

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Guys - I I had filed an extension request back in April and I just did my order as filing but I owe 20,000. Is it 0.5% every month for penalty and 5% interest? Are these calculations approximately correct?

Penalty - $100 every month of filing late

Interest - $500 total interest for 6 months late

Thanks

Not A Product Question

Anonymous_

Level 15

See https://www.irs.gov/taxtopics/tc653

Opus 17

Level 15

The penalty for failing to file on time is 5% per month (or part of month) then 0.5% per month after. That would not apply to you if you have an extension.

The penalty for late payment is 0.5% per month or part of month. So if you pay 1 day late or 29 days late, 0.5%. If you pay between 31 and 60 days late, 1%. And so on.

Then, the entire balance (interest plus penalties) is assessed interest which is a variable rate and I think is currently 8% APR.

So on a debt of $20,000 for 6 months, penalty and interest should be around $1400, using this calculator.

https://www.calculator.net/interest-calculator.html?cstartingprinciple=20%2C000&cannualaddition=&cmonthlyaddition=100&cadditionat1=end&cinterestrate=8&ccompound=annually&cyears=0&cmonths=6&ctaxtrate=0&cinflationrate=0&printit=0&x=Calculate#interestresults