What is the interest/penalty for paying quarterly tax estimates late?

Question

I can't seem to find what the interest/penalty is for paying 1040 ES payments late. Is it a flat percent whether its paid 1 day late or 2 months late?? any help is appreciated.

Answer 1

Others are partially correct. Form 2210 is used to calculate the penalty for underpayment of estimated tax, but the form doesn't necessarily have to be included with your return. See the form and its instructions for the details of when you have to file the form with your return.

There were two different penalty rates applicable to time periods in 2006 and 2007 The penalty rate for the time period from April 15, 2006 through June 30, 2006 is 7%. The rate from July 1, 2006 through April 15, 2007 is 8%. You can find these in Part IV, Section B of the 2006 Form 2210. Use these links to download both the form and the instructions, and then follow them carefully. If you don't have to file the form, let the IRS calculate the penalty for you. I always calculate it even if the form isn't required to be attached, so I know whether the IRS calculates it correctly.

http://www.irs.gov/pub/irs-pdf/i2210.pdf

http://www.irs.gov/pub/irs-pdf/f2210.pdf

Answer 2

See form 2210 to determine the penalty for the late payment penalty for making late Estimated Tax payments, the form will allow you to calculate the penalty.


http://www.irs.gov/pub/irs-pdf/f2210.pdf

Answer 3

Interest and penalties are generally assessed by the IRS by month or part of a month that you're late - 1 day is the same as one month, but two months is twice as much.

Answer 4

It's approximately 8% annually right now for underpayments.