Interest is the nasty little way your tax liability grows and grows. The IRS is not in the business of lending taxpayers money and has determined that interest rates will increase on unpaid tax balances come 2019.
Beginning January 1, 2019, the IRS will begin charging 6% for underpayments and 8% for large corporate underpayments. On a more pleasant note, if you find yourself expecting a refund from the IRS due to overpaying your taxes, the IRS will also be applying 6% interest (5% for corporations and 3.5% for corporations overpaying more than $10,000) to any refund not issued within 45 days of accepting your tax return or the April tax deadline, whichever is sooner.
If you’re not sure if this will impact you, interest is charged on any unpaid tax from the original payment due date until you have fully paid your tax obligation. Don’t let your liability weigh you down any longer. Contact 20/20 today to discuss putting an end to your tax liability so you’re not paying for the right to owe the IRS any longer.