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I tried to read the instruction from https://www.michigan.gov/documents/taxes/5313_Book_642104_7.pdf in order to calculation the interest and penalty I need to pay if I sent the payment. However, I failed to understand. Assuming I would be late for 240 days and I owned $1,000.00 originally. How much I own for penalty and interest? Are they:

Penalty = 1,000*6% = $60.00

Interest = 1,000*5.9%*240/365 = $39

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Your calculation for penalty seems to be wrong. 240 days is about 8 months, so you would owe 9% (the initial 1% plus 1% for each month) or $90.

The interest calculation is correct, but you need to check with them on the current interest rate (I cannot find it on their web site).

This is for informational purposes only and is NOT professional tax advice.

  • Thank you very much! Good news I am outside of the city limit. – user7226 Oct 4 '19 at 15:10

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