How to appeal late payment penalty and interest? Do I have to pay interest even if I owe no penalty?

I paid my taxes with my extension on Oct 15. I have received a notice from IRS for Penalty and interest on taxes owed since Oct 15.

 

Per Turbo tax as well as per my calculations through Dorm 2210, I see I don't owe a penalty.

 

1. How should I appeal the late payment penalty and interest request from IRS? Specifically are there any forms I need to include in my response?

 

2. Do I still owe interest even if there is no penalty?