How do you calculate interest on an amended return?

Forum|Forum|3 years ago
August 4, 2022
3 replies
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BobKamman

Level 15

I give the clients an estimate of how much it will be and tell them to wait for a bill. IRS doesn't charge interest on interest, so they might as well know the exact amount.

George4Tacks

Level 15

I don't. Like Bob says, give them a guess but let IRS send a bill.

Here is an estimator https://www.irscalculators.com/interest-calculator

Answers are easy. Questions are hard!

IRonMaN

Level 15

I don't even go that far. I just tell them that they might get a bill for some interest down the road. Nobody has ever came back and complained to me about not giving them an estimate.

Slava Ukraini!

BobKamman

Level 15

But I have had clients call me to say IRS billed them for $100 when my estimate was $40. And it turned out I was right. Of course, this results in work that builds goodwill but produces little revenue.

IRonMaN

Level 15

Did I forget to mention that I do very few amended returns so they don't tend to be revenue or goodwill producers.

Slava Ukraini!

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