I did file for extension for year 2019 Taxes.
I did NOT owe any taxes Last year. Tax liability was $0.
This year amount owed is $500
Total tax liability is less than $1,000
Did not owe any taxes for the previous year.
There 3 issues
Late filing Penalty (does NOT apply to me as I filed for an extension)
Late Payment Penalty. Need to Clarify as amount owed is less than $1000
Interest (compounded daily)
When liability is less $1000, is it automatic that I will Not be charged Late Payment Penality or it depends ON IRS?
I did check online daily compounded interest rate (3% + Fed rate (0.25%) = 3.25%) for $500 for 90 days will be $4.
OR Should I mail, $500 + $4 (interest rate) + $7.5 (0.5% late payment penality, $2.5 for each month?
Or should I mail $500 + $4 (interest rate) and wait for any letter which I may get for possible late payment Penality?
