The interest rate varies, but is typically around 3%-5%. It can change quarterly and is based on the Federal short-term rate plus 3%. Interest on your unpaid tax compounds daily, so you will want to pay it as soon as you are able.
How does the IRS determine interest penalties for unpaid taxes beyond the tax extension deadline? - Knowledgebase / Tax Extensions - FileSmart Helpdesk
How does the IRS determine interest penalties for unpaid taxes beyond the tax extension deadline?
Authors list
- Last updated: Jan 25, 2024 by Gabbi