Does an individual owe late payment penalties when he owes additional tax on an amended return and the tax due is less than 10% of the tax shown on the amended return?
Does an individual owe late payment penalties when he owes additional tax on an amended return and the tax due is less than 10% of the tax shown on the amended return?
We are filing an amended 2016 Form 1040 to report the SE tax due. The amount of tax due is $14K. The total tax on the amended return is more than $263K. Since the tax due is less than 10% of the total tax on the amended return, are late filing penalties applicable? Clearly, interest is due on the $14K.
I believe the 1040X instructions say no penalty unless not paid within 90(?) days.
Unless of course the 1040X is being prepared in response to an IRS notice which set forth tax, interest and penalties.
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