![]() ![]() In the previous example of a $1,000 balance that's a year late, you would owe $30 in interest and $60 in penalties, unless you get it waived. Unlike interest, the late payment penalty can be waived if you can show good cause for not paying on time. The late payment penalty is assessed in addition to interest and is 0.5% of any unpaid tax for each month or partial month it remains unpaid, up to a maximum of 25%. So, if you owe $1,000 and pay a year after the deadline, you'll owe $30 in interest. The IRS's interest rate can vary, and is 3% for underpayments as of the first quarter of 2016. ![]() To learn about calculating IA 2210 penalty, take a look at IA 2210 information and examples.You will owe interest on any tax not paid by the normal due date, even if you have a legitimate reason for not paying on time - such as being out of the country or some other hardship. pay by credit / debit card online or by telephone.arrange payment from your bank account through eFile & Pay (direct debit) on our website.If you need to make a tax payment to meet the 90% requirement, you may: This taxpayer receives an automatic extension until Octoand will pay only interest on the unpaid tax. This taxpayer will owe penalty and interest on the unpaid tax. No extension is available to this taxpayer. ![]() Example:ĩ0% of the tax has not been paid. If the result is equal to or less than the amount on line 69 of the IA 1040, an extension is automatic. Multiply the amount on line 56 of the IA 1040 by 90% (0.90). How to determine if 90% of the tax you owe has already been paid: You will owe interest on any tax still due after May 1. However, you may owe a 2210 penalty for failure to make estimated payments. You will not be charged a late file penalty. You have until October 31, 2017, to file your return timely. If at least 90% of your total tax liability is paid by May 1, 2017, you will automatically have an additional six months to file your return. A federal extension does not apply for Iowa purposes. The Department does not have an extension form to obtain additional time to file. ![]()
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