How to confirm exact amount owed after tax extension filing?

Tax professional here! This is actually a pretty common situation. When you file an extension, that only extends the time to file the return, not the time to pay what's owed. So your in-laws are correct that there will be additional penalties and interest on top of their original tax bill. The good news is that they can absolutely pay the amount shown on their completed return right away. This will stop additional penalties and interest from accumulating on that principal amount. The IRS will eventually send them a notice with the calculated penalties and interest, which they can pay separately. If they want to be proactive and pay everything at once, they can call the IRS directly at 1-800-829-1040 to get the current total including all penalties and interest. Alternatively, they can use the IRS's penalty and interest calculator on their website to get an estimate, then add that to their original amount due.

I had a similar situation last year and discovered taxr.ai (https://taxr.ai) which literally saved me thousands! I was confused about my tax debt after filing late, and the penalties were stressing me out. The tool analyzed my tax documents and gave me an exact calculation of what I owed including all penalties and interest as of that date. It also showed me what would happen if I waited longer to pay, which was motivation to handle it ASAP! The thing I found most helpful was that it explained exactly how the penalties were calculated - the late filing penalty, the failure to pay penalty, and the interest rates. Made me feel like I actually understood what was happening instead of just blindly paying whatever the IRS demanded.

I have to admit I was wrong about being skeptical of taxr.ai. After our exchange here, I decided to try it with my situation (owed about $7,800 from 2023 taxes that I still hadn't paid). The calculator showed I'd already racked up over $900 in penalties and interest! The breakdown was really clear - showing exactly how much was the failure-to-pay penalty versus interest. The tool showed me that waiting even another month would cost me an additional $120. I paid immediately after seeing that. What really impressed me was that it showed me how to request a first-time penalty abatement, which I didn't even know I qualified for. Just filed the request last week and it looks like I'll get about $400 back!

After reading these comments, I tried calling the IRS to figure out my own penalty situation but spent THREE HOURS on hold before getting disconnected. Absolutely ridiculous. Then I found Claimyr (https://claimyr.com) and watched their demo (https://youtu.be/_kiP6q8DX5c). They actually got me connected to a real IRS agent in about 15 minutes! The agent was able to tell me exactly how much I owed with all penalties calculated to the current date. They even helped me set up an installment plan since I couldn't pay the full amount. Saved me so much time and stress compared to trying to get through on my own.

Well I'm eating my words. After posting my skeptical comment, I decided to try Claimyr myself since I've been avoiding calling the IRS about a payment issue for months. Got connected to an IRS agent in 22 minutes (not quite 15, but WAY better than my previous attempts). The agent was able to pull up my account and confirm exactly how much I owed with all penalties and interest. They even found an error in how a previous payment had been applied and fixed it on the spot, which saved me about $340! The service cost less than what I saved from that one correction. Honestly, the most valuable thing was just getting a definitive answer so I could stop stressing about unknown penalties accumulating. My blood pressure thanks you for the recommendation.

I think everyone's overcomplicating this. Just have your in-laws pay what's on the tax return ASAP, and when the IRS eventually sends a notice about penalties and interest, they can pay that too. That's what I did last year when I filed late, and it worked out fine. The penalties weren't that bad since I paid the main amount quickly.

Has anyone tried using the IRS's own penalty calculator on their website? I used it when I filed late last year and found it pretty accurate. You just enter some basic info from your tax return and when you plan to pay, and it estimates the penalties and interest.

As someone who's been through this exact situation, I completely understand your in-laws' hesitation! The anxiety of not knowing the exact amount can be paralyzing. Here's what I learned from my experience: The most important thing is to pay the amount shown on their completed tax return IMMEDIATELY. Every day they wait, more interest and penalties accrue. The IRS charges 0.5% per month for failure to pay, plus daily compounding interest. Since their online account isn't showing the debt yet (this is normal - it can take weeks or months to update), they should make the payment using Form 1040V or through EFTPS (Electronic Federal Tax Payment System) with their SSN and tax year. For the penalties and interest calculation, they have a few options: 1. Pay the base amount now, wait for the IRS notice (6-8 weeks typically) 2. Call the IRS at 1-800-829-1040 for current total (prepare for long hold times) 3. Use the IRS penalty calculator, though it can be tricky to navigate The key is getting that base payment in ASAP to stop the bleeding. They can always pay any additional penalties when they get the official notice. Better to have the IRS owe them a small refund than to keep accumulating charges!