Filing decedent’s final tax return

I am the executor of an estate. The decedent's final tax return was due a few years ago. Say if the decedent owed $5,000 in federal taxes and it was due April 2023. Below are two options that I am trying to decide:

Option 1. I pay IRS $5000 when I file 1040, and wait for them to tell me the interest and penalty

Option 2. I pay IRS $5000 + $500 for the estimate of interests = total $5,500 when I file 1040

Would Option 2 results in less total payment than Option 1 in the end? My logic is that the extra $500 interest payment might stop further interest from accruing on the old interest (at least partially)

Is my logic correct? what are the pros and cons of each option?

Also, what is the best way to request the penalty to be waived? Should I wait till they bill me the penalty? Or should I write a letter to request penalty waived when I file 1040?

Edit: Is it possible to also request a reduction in interest? I have an unusual circumstance: it took a long time for the court to appoint me as the executor. Hence, the late filing.

Thank you for your input.