A Dime Late; And 54 Dollars Short - 1990-03-08
WASHINGTON (AP) _ A dime's worth of difference is nothing to sneeze at where the Internal Revenue Service is concerned.
When Mary Frances Stinson of Dorchester, Mass., filed her tax return in 1987, she was 10 cents short on her payment. Nearly three years later the IRS notified her that the 10-cent debt had grown to $54.94 because of interest and penalties.
The computer-generated form letter said the IRS had assessed a $24 late- payment penalty plus $30.84 interest on the late payment. However, the billing noted that under the law, the penalty cannot exceed 25 percent of the late payment - in this case that would be 2 cents.