There are some penalties that are pretty straight forward and then there is the IRS Failure to File (FTF) penalty 6651(a)(1). The FTF is a 5% per month penalty to a maximum of 5 months or 25% from the due date or the extension date, whichever is later. If the FTF and the Failure to Pay (FTP) penalty run simultaneously, you only pay 4.5% for the FTF penalty and it caps out at 22.5% as the IRS is limiting the combination of the two penalties to 5% overall. That is the good news.
A customer recently asked how to use TValue to determine the balance and annual interest contributions if they invested $100,000 in an annuity that was compounded annually for 15 years.
The minimum lease payments are the lowest amount that a lessee can expect to make over the lifetime of the lease. The minimum lease payments, including a guarantee of a residual if applicable, are used to value the lease by doing a net present value (NPV) calculation. The method of calculating minimum lease payments is laid out in the Statement of Financial Accounting Standards No. 13 (FAS 13), Accounting for Leases.
When I first joined TimeValue Software, it took me a while to understand the difference between Daily (compounding) and Exact Days. Both methods calculate interest each day but that is where the similarity ends.
Occasionally, we get a customer that has a unique situation where they have to do daily payments. Sometimes they are only during the business week and sometimes they are 7 days a week. This is a calculation that you can do in TValue but it takes a little bit of creativity to do it.