Line 74
graphic of 2007 expanded instructions
Questions? E-mail Us!
2007 Expanded Instructions Home
click here to go to IRS forms
Click here to go to e-file choices
click here to go to topic index
click to go to the line index

 

74. PENALTY AND INTEREST. Enter the penalty on line 74a, the interest on line 74b and the total on line 74.

74a. PENALTY

10% Penalty for Failure to Timely File a Return:
If you do not file your return by the due date and at least 90% of the correct tax is not paid, you owe an additional 10% of the unpaid tax.

5% Penalty for Failure to Timely Pay the Tax Due:
If you file your return on time but do not pay at least 90% of the correct tax due, you owe an additional 5% of the unpaid tax.

You will never be subject to both the 5% and 10% penalties. The penalty will be the applicable 5% or 10%, but not a total of 15%.

74b. INTEREST.

Interest must be added to delinquent tax. Interest is added at a rate of 0.8% per month beginning on the due date of the return (May 1) and accrues each month until paid in full. Part of a month constitutes a whole month, so if you pay the tax on June 3, you are late for May and June for a total interest rate of 1.6% (2 x 0.8%).

Go to Line 73

Go to Line 75