Why did I receive a bill showing that I owe tax? I sent my return and payment late, but I paid all the tax.
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We calculate penalty and interest at the time the return and payment are received. The payment is applied to fees first, penalty second, interest third, and, finally, to the tax amount due. Therefore, the balance due remains in the tax column on the billing notice.
Example:
| Tax | Penalty | Interest | Fee | Total | |
| Owed | 150.00 | 15.00 | 1.20 | 166.20 | |
| Paid | -138.80 | -15.00 | -1.20 | -150.00 | |
| Balance | 16.20 | 16.20 | |||
| Billing | 16.20 | .12 | 16.32 |
Interest continues to accrue on the balance of the tax amount due and will be added on the first day of each new month.