Refer to the preceding problem.
a. Will Carl owe interest? If so, on what amount and for how many days?
b. Assume the applicable interest rate is 6%. Compute Carl's interest payable if his 2013 tax is $23,000. (See a major tax service for the compounding tables.)
In preceding problem
Carl, a calendar year taxpayer, requests an automatic extension for filing his 2013 return. By April 15, 2014, he has paid $20,000 of taxes in the form of wage withholding and estimated taxes. He does not pay any additional tax with his extension request. Carl files his return and pays the balance of the taxes due on June 18, 2014. For 2012, his tax liability was $19,000, and his AGI did not exceed $150,000. What penalties will Carl owe if his 2013 tax is $23,000? $20,800?