How Much Do You Owe the IRS Right Now?
IRS Penalty & Interest Calculator
How much has the IRS added to your tax bill, and how much can be challenged?
Penalties and daily interest can balloon a tax balance fast, especially across several years. Add each year and amount you owe to see what the IRS has tacked on, and how much of it may be reducible. This is an estimate, not a bill or a final number.
Your situation
Refine your estimate (advanced options)
Estimated balance today
$0
| Original tax owed | $0 |
| Failure-to-file penalty | $0 |
| Failure-to-pay penalty | $0 |
| Interest (compounded daily) | $0 |
Breakdown by tax year
| Year | Tax | Penalties | Interest | Subtotal |
|---|
$0 of this balance is penalties and the interest charged on them.
Penalties are not always final. Depending on your situation, some or all of them may be reducible through penalty abatement or by contesting the IRS’s position — it’s worth talking to Wiggam Law about whether relief applies to your case. Interest is harder to remove, though it can sometimes come down when the underlying penalty does. No outcome is guaranteed.
The IRS has a head start. Let’s close the gap.
Wiggam Law is a team of tax attorneys and IRS-credentialed enrolled agents in Atlanta, representing individuals and businesses against the IRS and the Georgia Department of Revenue, and clients nationwide. We are advocates, not order-takers: when a penalty is excessive we pursue abatement, and when an assessment is wrong we contest it.
The penalty and interest calculator shows you how much you owe the IRS. Enter the years you owe, the approximate tax debt, and let the calculator do the rest. This is only an estimate, not a payoff or official amount.
How to Use the Interest & Penalty Calculator
To get an estimate of how much you owe, including interest and penalties:
- Enter the tax year and the tax due
- Add a row for each additional year
- Choose whether you filed late or on time
- Get an estimate of how much you owe
- Open the breakdown to see how much is due from each year
Interpreting the Results
What does it mean? Here's how to read the results:
- Original tax owed: the total tax owed from the returns you filed
- Failure-to-file penalty: IRS penalty for late filing, up to 25% of your original tax
- Failure-to-pay penalty: IRS penalty for late payment, up to 25% of your original tax
- Interest: applied to the original tax and penalties, at a variable rate
Relief is possible. The IRS removes penalties for reasonable cause and under the first-time abatement rules. When the IRS waives penalties, it also removes the interest associated with those penalties. Get help dealing with interest, penalties, and tax debt – learn about our penalty relief services.
FAQs IRS Interest & Penalty Calculator
Why do I owe the IRS more than when I filed?
The IRS adds interest and penalties to all late tax payments. Sometimes, penalties and interest can nearly double the original tax bill.
Will the IRS remove or reduce my penalties?
Possibly. If you filed or paid late due to events out of your control (illnesses, disasters, fires, etc.), the IRS may waive most penalties. The agency also forgives penalties if you have a history of good compliance for the last three tax years.
Will the IRS waive interest?
Only in cases of certain IRS errors. However, if the IRS removes a penalty, it'll also remove the interest that accrued on it.
What is reasonable cause for penalty relief?
The IRS doesn't have a set definition or list of qualifying events for reasonable cause. Rather, you typically need to prove that you acted with care and were not able to comply with the tax laws. Getting relief usually boils down to convincing the IRS, which is why an attorney can be critical if you owe substantial penalties.
Do penalties and interest keep adding up while I deal with this?
Unfortunately, yes. However, you can stop failure-to-file penalties by filing returns, and the IRS cuts the failure-to-pay penalty to 0.5% if you're on a payment plan.
Does the Georgia Department of Revenue charge interest and penalties?
Yes, if you're late on your Georgia tax payments (income tax, sales tax, withholding tax, etc.), you will face penalties and interest.
Should I hire an attorney to help me with the penalties?
It depends on how much you owe and the complexity of your case. If there's a lot at stake, an attorney can be indispensable. It's also important to note you don't have unlimited chances or time. If the IRS denies your relief claim, you only have one chance to appeal.