Is there a benefit of using TaxInterest for an amended return, a non-filer, or late filer?
We all know the IRS is not known for their turn around. If you are sending in an amended return, a late return, or one for a non-filer and you pay both the tax and the interest and penalties, you are done. Otherwise, you will get another bill in a couple of months with more interest and penalties to deal with. This can get costly and create more work.
How does the IRS make mistakes?
Calculations are based on amounts and dates. There can be wrong assumptions or incorrect inputs. Often, the IRS scans or inputs returns. There are also lots of toggles and overrides based on assumptions. The more manual touches, the more room for error. If there was an incorrect input amount or date, the interest and/or penalty calculation will be off. TaxInterest can reconcile these calculation differences.
Are the state's interest calculation methods built into the program?
The calculation methodology is built in for each state along with the appropriate interest rate. States calculate interest differently from daily compounding, to annual compounding, to exact days with simple interest. TaxInterest is programmed to handle each state's methodology within each table.
If you find a difference, will the IRS accept your reports?
The IRS is one of our largest licensees and is very familiar with the TaxInterest reports. If your assumptions are correct you will be good.
Can I use TaxInterest for other past due tax amounts other than income taxes?
The IRS has one interest rate and some deviations from that. Most states have one interest rate for all their taxes. So the answer is probably yes. There are a few states that have different rates for different taxes. You can build custom tables in TaxInterest too.
Do I need any programming experience to get up and running?
All you need to do is download the TaxInterest Engine and then use the Functions within Excel. It is very simple to do. We have instructions and offer support to get you up and running.