Regarding a letter recently written by Frank Forsha on this subject. I would like to elaborate on my recent experience with our local municipal tax office. I just received a letter about my 2010 return, which, of course, I filed 3 years ago. It stated that my tax obligation for that year and my credits also totaled that same amount. Then it said I owed one amount for interest and another amount for penalty. My thought was, how can I owe interest and penalty on a zero balance when it was all filed and paid timely? I did make all four quarterly payments and at the time I filed my return, I owed a little over $100, which I paid when I filed well before April 15, 2011. I was told that because I owed more than $100 at the time of filing, I must pay interest and penalty.