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How are penalty and interest charges calculated for failure to file estimated payments or underpayment of estimated payments?

How are penalty and interest charges calculated for failure to file estimated payments or underpayment of estimated payments?

Penalty is 25% for failure to file estimated payments or 10% of underpaid tax per quarter.

For exceptions see MCL 205.23(3)

Interest is 1% above the prime rate.

For more information view Penalty and Interest for Underpayment of Estimates (MI-2210)