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Do you owe money to the IRS? Tax services near me explain new interest rates.
The IRS has released new interest rates, which means you may have interest on the tax due. If they owe you money, they may pay you interest.
If you missed the 4th quarterly payment for 2021, get ready to pay some penalties because it was due 1/18/2022. If you are unsure how to navigate, tax services near me can help.
If you pay 90% of the taxes due for 2021 in estimated payments or 100% – 110% of taxes paid in 2020, whichever is more, you can avoid most penalties. You may still get hit with penalties for failure to make equal payments throughout the year.
The IRS requires that you pay taxes on your income, even below or above certain limits. If the total is under $150K for 80% tax paid purposes, then 100%, but anything over will require an additional 110%.
You need to make at least some of the payments due or risk getting your extension rejected; if you file for an extension.
Note: This is for both your federal and state taxes.
4% is the IRS interest rate on unpaid taxes (plus penalties, if applicable). For corporations, the interest rate is 6%, and these rates are adequate for the 2nd quarter of 2022.
If the IRS owes you a refund: The IRS starts paying interest on refunds when you’ve waited over 45 days. You’ll get 4% if you’re an individual and 3% for corporations. If the corporate debt is over $10K, the rate drops to 1.5%