How to confirm final tax amount owed after filing extension?

My in-laws are driving me crazy with this tax situation. They filed an extension back in April but then waited until two months ago to actually get their taxes done by a preparer. Now they STILL haven't paid what they owe because they're confused about the total amount. Their completed tax return clearly shows how much they owe, but they keep insisting that since it's months after the April 15th deadline, the amount must be higher now due to penalties or interest. I tried helping by setting up an IRS online account for my father-in-law (they file jointly), but there's no balance showing up in the system yet. Can they just pay the amount listed on their completed tax return? Or do they need to calculate additional penalties and interest? If so, how do they figure out the exact total they need to pay now? This is stressing everyone out and I just want to help them get it resolved!

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18 comments

Reginald Blackwell

•8M

They can absolutely pay the amount shown on their return, but you're right that they'll also owe penalties and interest since it's past the deadline. The IRS will eventually send a bill for those additional charges. Here's what I'd recommend: Have them pay the tax amount shown on their return ASAP to stop additional penalties and interest from accruing. They can do this online through IRS Direct Pay, which is free and secure. Just make sure they select "extension" and the correct tax year when making the payment. For calculating the exact penalties and interest, that's tougher without specialized software. The failure-to-pay penalty is typically 0.5% of unpaid taxes per month, and interest rates change quarterly (currently around 8% annually). But honestly, unless the amount owed is huge, I'd just pay the base amount now and wait for the IRS to bill for the rest.

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Reginald Blackwell

•8M

Yes, the IRS will automatically send a separate bill for the penalties and interest. They have systems that track when payments are made and calculate what additional amounts are due. Your in-laws don't need to contact the IRS specifically for this calculation. If they want to be super proactive, they could call the IRS at the number on their tax forms and request a payoff amount, but honestly, with current wait times, it's usually faster to just pay the base amount now and handle the penalty bill when it arrives.

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Everett Tutum

•8M

I was in a similar situation last year and discovered taxr.ai https://taxr.ai which really helped me figure out my actual amount owed including penalties. I uploaded my tax documents, and it calculated everything - the original tax amount plus all the late payment penalties and interest. Saved me from having to figure out those complicated IRS penalty formulas myself! The system even showed me exactly how the penalties increase over time, which motivated me to pay asap. It was pretty eye-opening to see how quickly those penalties add up. For your in-laws, it might provide the clarity they need to finally make that payment.

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Everett Tutum

•8M

It doesn't connect directly to IRS systems, but it uses the official IRS penalty and interest rates in its calculations. You input your filing date, the date you're planning to pay, and the tax amount - it does the rest. The penalty calculations are based on the current IRS formulas and interest rates. It accounts for both the failure-to-pay penalty (0.5% per month) and the variable interest rate the IRS sets quarterly. I compared its results with what the IRS eventually billed me, and it was within a few dollars - close enough to plan properly.

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Effie Alexander

•8M

If your in-laws want to know the EXACT amount including all penalties right now, they should just call the IRS directly. I know, I know - calling the IRS feels impossible. I spent DAYS trying to get through last year until I found Claimyr https://claimyr.com which got me connected to an IRS agent in under 20 minutes. They have this video showing how it works: https://youtu.be/_kiP6q8DX5c - basically they navigate the phone system and wait on hold for you, then call when an agent is ready. The agent calculated my exact payoff amount including all penalties and interest up to my planned payment date. Super helpful because I could pay everything at once and be completely done.

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Effie Alexander

•8M

It doesn't bypass the queue - it waits in it for you. Their system basically dials and navigates through all the IRS prompts, then holds your place in line. When a human agent finally answers, you get a call to connect with them. No magic, just technology doing the waiting instead of you. The system works by connecting you only when an actual IRS representative is on the line. I was skeptical too, but it worked exactly as advertised. I didn't have to sit by my phone for hours listening to that awful hold music, which made a huge difference mentally.

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Lydia Santiago

•8M

I'm honestly shocked but have to admit I was completely wrong about Claimyr. After posting my skeptical comment, I decided to try it for my own situation (owed taxes from 2022 I've been avoiding dealing with). Got connected to an IRS agent in about 35 minutes without having to actually sit on hold myself. The agent gave me my exact payoff amount including all penalties and interest. Turns out I owed way less than I feared - the penalties weren't as bad as I expected. Peace of mind was totally worth it.

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Romeo Quest

•8M

Most professional tax preparers can do this if they have proper authorization. Your in-laws would need to have signed a Form 8821 or Power of Attorney (Form 2848) allowing the preparer to access their tax information. If they didn't sign this initially, they might need to do that first. Many enrolled agents and CPAs routinely offer transcript services as part of their package when they prepare returns. It's worth asking, especially since the preparer is already familiar with their tax situation and could explain everything in context.

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