This tool helps estimate penalties and interest on unpaid tax balances, based on official IRS rates. Interest is compounded daily.
Disclaimer: This is for estimation purposes only. Consult with a tax professional for official figures.
The calculation is an estimate based on IRS rules and is divided into three parts:
This penalty is 5% of the unpaid tax for each month or part of a month the return is late. The maximum penalty is 25%. If you filed a valid extension, this penalty does not apply for the first 6 months.
This penalty is 0.5% of the unpaid tax for each month or part of a month the tax is not paid. The maximum penalty is 25%. This penalty applies even if you filed a valid extension.
Interest is charged on the total unpaid balance (tax plus penalties) and compounds daily. The IRS sets the interest rate on a quarterly basis. This calculator uses the most recent available rate for all dates in the future for estimation purposes. For the official rates, please visit the IRS Quarterly Interest Rates page.