Calculating Penalty and Interest

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2.   Late payment penalty — multiply step 1 by 4% (.04)

4.   Extended delinquency. If your tax is not paid within 180 days after filing your return, multiply step 1 by 5% (.05)

5.   Add steps 1 through 4

6.   Number of days the tax is late. If the days fall in more than one calendar year, determine steps 6 through 10 separately for each year.

7.   Enter the applicable interest rate. For 2023, the rate is 5% (.05)

8.   Multiply step 6 by step 7

9.   Divide step 8 by 365 (carry to five decimal places)

10. Interest — multiply step 5 by step 9

11. Total payment amount. Add step 5 and step 10

Note: We do not charge a late payment penalty if both of these are true:

• You pay at least 90% of your total tax by April 18, 2023
• You file your return and pay any remaining tax by October 16, 2023

**If the days fall in more than one calendar year, determine steps 6 through 10 separately for each year.