[Ben]

I may be over thinking this but my study text doesn’t explain this very well.

An Individual’s LATE PAYMENT OF TAX fee is 0.5% of net tax due per month (up to 25%). Lets assume taxes are due April 15th and the individual pays the tax due on May 17th.

Do they owe a Late Payment Fee of 0.5% (for 1 month) or 1.0% (for 2 months)?

[Adam]

1 month plus 2 days..it accrues per filing due date

[Steven K]

@Ben.Balch I am under the impression that you would pay a penalty for 2 months (ie 1%).
The textbook states that the penalty is .5% for each month (or any part of) that month. penalties start accruing the day after the return is due. Therefore, you would have to pay 2 months of the penalty.

[Author]

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