06-09-2022, 02:31 AM
While taxpayers might naturally be tempted to wait a few weeks after the deadline before filing, that decision could cost them. The IRS charges interest (compounded daily) at an annual rate equivalent to the federal short-term rate plus 3 percent on any unpaid taxes, starting from when payment is due until the payment is received. In addition to charging interest, the IRS also charges a penalty for filing late (5 percent of the amount owed for each month or partial month the payment is late, up to a total of 25 percent). Depending on the amount someone owes and how long he or she waits to pay, interest and penalties can mount up in a hurry. What kinds of mistakes? Read on to find out. 9. We do all that work of preparing our taxes. Then many of us forget the easiest part of all -- signing. You've gathered all your records, filled out your paperwork and sent everything in on time.
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