Irs

[timlasley]

Molly forgot to send in payroll taxes due April 15, 2011. She sent the payment November 8, 2011. IRS sent her a penalty charge of 8% simple interest on unpaid taxes of $4100.00. Calculate the penalty. (remember the IRS uses exact interest)

4100 x .08 x 207/365
= 186.02

 

[timlasley]

tried:

4100 x 8% x 207/360 =
188.60

still says its wrong

 

[tkhunny]

Exact Interest. 360 is no good.

Have you considered truncating, rather than rounding? $186.01

Shot in the Dark -- Some systems worry about leap year on a fiscal year basis. I'll show you...

4/15/2011 - 4/15/2012 Includes leap year day (2/29/2012), so this is a Fiscal Leap Year. Use 366, not 365. 4100 * 0.08 * 207/366 = 185.508

There are various ways to go about it.