Penalties & Interest

[user17581251833]

I filed late and owed and did not file for an extension. However, when I did file Turbo tax did not calculate the proper amount that I owed (in penalties), so then I got a bill from IRS... with all these extra charges that the software should have and could have accounted for... the software asks a bizillion other questions, why not these???

[xmasbaby0]

Only the IRS calculates the late filing penalty and interest owed---based on how much you owed, when they receive your return and how much you pay at the time you file the return.  TT does not calculate the late filing penalty or interest since TT has no way to know when the return will be received/accepted by the IRS or if your payment of tax due was made.  

[Andrew_W]

TurboTax does not calculate tax penalties as these are not a part of the tax return itself. The IRS does not have a specific form or process for calculating these along with your return, which is why TurboTax does not calculate this with your return. TurboTax will only calculate the original tax liability on the return. 

If you are subject to failure to file or failure to pay penalties, the IRS will calculate these separately, including interest rates (which fluctuate quarterly), and will send you a notice detailing the penalty, as you have experienced. 

[user17581251833]

Thank you for responding, but I disagree.  TT has the ability to calculate based on the electronic filing date.  In addition, you can at least send us to a page that list the current penalties (i.e., failure to pay est prop tax... $90, failure to file $515, etc.). There are some disclosures that TT can add, or send a direct link to the IRS site. .. "If you are filing late with an extension, then see page 99998 of the IRS code to know what additional charges you may be facing LATER" this TT can do?  I get that about % calculations based on exact dates and exact amounts owed.