S6166_Paragraph
(k4) - Section 6166(k)(4) - Interest - Section 6601(j)
Section 6601(j) Example 2 Determining the §6601(j) Interest Payable on Each Anniversary Date Through Feb-10-2021 Section 6166(b)(10) From Example 1 | |||||
§6166(b)(10) | Installment Number | ||||
| 1 | 2 | 3 | 4 | 5 | |
| Due Date | 1st Ann. Date | 2nd Ann. Date | 3rd Ann. Date | 4th Ann. Date | |
| Feb-10-2017 | Feb-10-2018 | Feb-10-2019 | Feb-10-2020 | Feb-10-2021 | |
| 2% portion of tax | 592,000.00 | 473,600.00 | 355,200.00 | 236,800.00 | 118,400.00 |
| 2% installment due | 118,400.00 | 118,400.00 | 118,400.00 | 118,400.00 | 118,400.00 |
| 2% interest due | 0.00 | 9,567.09 | 7,175.32 | 4,782.06 | 2,392.51 |
| Total 2% installment due | 118,400.00 | 127,967.09 | 125,575.32 | 123,182.06 | 120,792.51 |
| 2% tax balance forward | 473,600.00 | 355,200.00 | 236,800.00 | 118,400.00 | 0.00 |
| 45% of R% portion of tax | 3,945,541.57 | 3,156,433.26 | 2,367,324.94 | 1,578,216.63 | 789,108.31 |
| 45% of R% installment due | 789,108.31 | 789,108.32 | 789,108.31 | 789,108.32 | 789,108.31 |
| 45% of R% interest due | 0.00 | 57,328.79 | 42,996.60 | 28,655.52 | 14,336.64 |
| Total 45% of R% installment due | 789,108.31 | 846,437.11 | 832,104.91 | 817,763.84 | 803,444.95 |
| 45% of R% tax balance forward | 3,156,433.26 | 2,367,324.94 | 1,578,216.63 | 789,108.31 | 0.00 |
| Total tax installment due | 907,508.31 | 907,508.32 | 907,508.31 | 907,508.32 | 907,508.31 |
| Total interest due | 0.00 | 66,895.88 | 50,171.91 | 33,437.58 | 16,729.15 |
| Total installment due | 907,508.31 | 974,404.20 | 957,680.22 | 940,945.90 | 924,237.46 |
The numbers in this table assume:
- The return was filed on the return due date with all payments then due,
- There was no change in tax from an IRS examination,
- There were no payments other than the amounts billed for each anniversary date; and,
- All anniversary date payments were timely.