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Natural disasters seem more common than ever and the IRS often extends tax relief to affected taxpayers by extending due dates or payment dates. As long as you file or make your payments within these extended windows, you won’t incur any interest or penalties.
However, if you miss these extensions, interest and penalties still apply, starting from different points in time. TaxInterest gives you the ability to determine those points in time and enter the correct dates to get accurate calculations.
For example, beginning on Oct. 5, 2024, the IRS announced tax relief for individuals and businesses in parts of Florida that were affected by Hurricane Milton. These taxpayers now have until May 1, 2025, to file various federal individual and business tax returns and make tax payments.
In TaxInterest if you’re calculating for a delinquent return or late payment, your Tax event will now be May 1, 2025 instead of March or April 15. Your interest and penalties will start from this event date. For the Failure to File and the Failure to Pay, you can input the appropriate date to get your calculations.
If you are calculating an estimated tax penalty, you may also get relief on your deposit due dates. The 2024 quarterly estimated tax payments normally due on Jan. 15, 2025, and 2025 estimated tax payments normally due on April 15, 2025, will be due on May 1, 2025. The estimated tax penalty is actually an interest calculation and you have the flexibility to put in the appropriate deposit due dates to calculate the penalty. On our website, we have a Blog and a Training Video on calculating estimated tax penalties that may be helpful at TimeValue Software, Support and Resources.
The TaxInterest program offers you the flexibility to handle nearly any situation, ensuring accurate interest and penalty calculations. For assistance with interest and penalty calculations using TaxInterest software, please contact TimeValue Software Support Team at 800-426-4741.
