Hypothetically, if a taxpayer has a $500 late payment penalty plus $2,000 in interest accrued on the late payment, does the California penalty abatement (FTB 2918) cover only the penalty, or the whole $2,500 penalty plus interest?
Does the CA late payment penalty abatement include interest charged?
byu/Missing4Bolts intax
Posted by Missing4Bolts
1 Comment
Generally penalty abatement only covers the penalty and not interest. Interest may be abated if the penalty was due to an error by the government