Mixing
Does IRS charge interest for underpaid taxes?
Clash Royale CLAN TAG#URR8PPP
.everyoneloves__top-leaderboard:empty,.everyoneloves__mid-leaderboard:empty margin-bottom:0;
up vote
1
down vote
favorite
There is a rule that if no taxes are owed on last year's tax return, the IRS will not impose a penalty, but will interest be charged?
Example: assume no federal taxes have been withheld during 2018. On April 15th 2019 tax return is filed and 20k of taxes is owed. No late payment penalty is assessed because no taxes were owed for 2017. Will there still be an interest charge on the 20k?
Do we have an authoritative reference on this?
united-states taxes interest
edited 3 hours ago
Chris W. Rea
26.2k1586174
asked 4 hours ago
NingNing
61
New contributor
NingNing is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
add a comment |Â
up vote
1
down vote
favorite
There is a rule that if no taxes are owed on last year's tax return, the IRS will not impose a penalty, but will interest be charged?
Example: assume no federal taxes have been withheld during 2018. On April 15th 2019 tax return is filed and 20k of taxes is owed. No late payment penalty is assessed because no taxes were owed for 2017. Will there still be an interest charge on the 20k?
Do we have an authoritative reference on this?
united-states taxes interest
edited 3 hours ago
Chris W. Rea
26.2k1586174
asked 4 hours ago
NingNing
61
New contributor
NingNing is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
add a comment |Â
up vote
1
down vote
favorite
up vote
1
down vote
favorite
There is a rule that if no taxes are owed on last year's tax return, the IRS will not impose a penalty, but will interest be charged?
Example: assume no federal taxes have been withheld during 2018. On April 15th 2019 tax return is filed and 20k of taxes is owed. No late payment penalty is assessed because no taxes were owed for 2017. Will there still be an interest charge on the 20k?
Do we have an authoritative reference on this?
united-states taxes interest
edited 3 hours ago
Chris W. Rea
26.2k1586174
asked 4 hours ago
NingNing
61
New contributor
NingNing is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
There is a rule that if no taxes are owed on last year's tax return, the IRS will not impose a penalty, but will interest be charged?
Example: assume no federal taxes have been withheld during 2018. On April 15th 2019 tax return is filed and 20k of taxes is owed. No late payment penalty is assessed because no taxes were owed for 2017. Will there still be an interest charge on the 20k?
Do we have an authoritative reference on this?
united-states taxes interest
united-states taxes interest
edited 3 hours ago
Chris W. Rea
26.2k1586174
asked 4 hours ago
NingNing
61
New contributor
NingNing is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
edited 3 hours ago
Chris W. Rea
26.2k1586174
asked 4 hours ago
NingNing
61
New contributor
NingNing is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
edited 3 hours ago
Chris W. Rea
26.2k1586174
edited 3 hours ago
Chris W. Rea
26.2k1586174
edited 3 hours ago
Chris W. Rea
26.2k1586174
26.2k1586174
asked 4 hours ago
NingNing
61
New contributor
NingNing is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
asked 4 hours ago
NingNing
61
asked 4 hours ago
NingNing
61
61
New contributor
NingNing is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
New contributor
NingNing is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
NingNing is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
add a comment |Â
add a comment |Â
2 Answers
2
active
oldest
votes
up vote
2
down vote
In this scenario, no estimated payments are required and the tax owed is paid in full with the on-time return. Therefore, no interest is due. According to the IRS, "Generally, interest accrues on any unpaid tax from the due date of the return until the date of payment in full."
answered 57 mins ago
nanoman
3,3331813
add a comment |Â
up vote
1
down vote
Do we have an authoritative reference on this?
IRS Publication 505 provides Estimated Tax info. The exact quote from page 3 is:
You should try to have your withholding match your actual tax liability. If not enough tax is withheld, you will owe tax at the end of the year and may have to pay interest and a penalty.
See page 48 for examples about penalties and interest.
answered 3 hours ago
Bob Baerker
11.7k11743
1
This doesn't address the question. Question: if I don't owe the penalty, do I owe interest? Your answer: you may owe interest and a penalty. But the question presumes that a penalty is not owed. The asker already knows that interest and penalties are possible but specifically asks about a suggestion when a penalty is not charged (because no tax was owed the previous year). You've answered a specific situation with a general answer that does not take into account the specific situation.
– Brythan
24 mins ago
add a comment |Â
2 Answers
2
active
oldest
votes
2 Answers
2
active
oldest
votes
active
oldest
votes
active
oldest
votes
up vote
2
down vote
In this scenario, no estimated payments are required and the tax owed is paid in full with the on-time return. Therefore, no interest is due. According to the IRS, "Generally, interest accrues on any unpaid tax from the due date of the return until the date of payment in full."
answered 57 mins ago
nanoman
3,3331813
add a comment |Â
up vote
2
down vote
In this scenario, no estimated payments are required and the tax owed is paid in full with the on-time return. Therefore, no interest is due. According to the IRS, "Generally, interest accrues on any unpaid tax from the due date of the return until the date of payment in full."
answered 57 mins ago
nanoman
3,3331813
add a comment |Â
up vote
2
down vote
up vote
2
down vote
In this scenario, no estimated payments are required and the tax owed is paid in full with the on-time return. Therefore, no interest is due. According to the IRS, "Generally, interest accrues on any unpaid tax from the due date of the return until the date of payment in full."
answered 57 mins ago
nanoman
3,3331813
In this scenario, no estimated payments are required and the tax owed is paid in full with the on-time return. Therefore, no interest is due. According to the IRS, "Generally, interest accrues on any unpaid tax from the due date of the return until the date of payment in full."
answered 57 mins ago
nanoman
3,3331813
answered 57 mins ago
nanoman
3,3331813
answered 57 mins ago
nanoman
3,3331813
answered 57 mins ago
nanoman
3,3331813
3,3331813
add a comment |Â
add a comment |Â
up vote
1
down vote
Do we have an authoritative reference on this?
IRS Publication 505 provides Estimated Tax info. The exact quote from page 3 is:
You should try to have your withholding match your actual tax liability. If not enough tax is withheld, you will owe tax at the end of the year and may have to pay interest and a penalty.
See page 48 for examples about penalties and interest.
answered 3 hours ago
Bob Baerker
11.7k11743
1
This doesn't address the question. Question: if I don't owe the penalty, do I owe interest? Your answer: you may owe interest and a penalty. But the question presumes that a penalty is not owed. The asker already knows that interest and penalties are possible but specifically asks about a suggestion when a penalty is not charged (because no tax was owed the previous year). You've answered a specific situation with a general answer that does not take into account the specific situation.
– Brythan
24 mins ago
add a comment |Â
up vote
1
down vote
Do we have an authoritative reference on this?
IRS Publication 505 provides Estimated Tax info. The exact quote from page 3 is:
You should try to have your withholding match your actual tax liability. If not enough tax is withheld, you will owe tax at the end of the year and may have to pay interest and a penalty.
See page 48 for examples about penalties and interest.
answered 3 hours ago
Bob Baerker
11.7k11743
1
This doesn't address the question. Question: if I don't owe the penalty, do I owe interest? Your answer: you may owe interest and a penalty. But the question presumes that a penalty is not owed. The asker already knows that interest and penalties are possible but specifically asks about a suggestion when a penalty is not charged (because no tax was owed the previous year). You've answered a specific situation with a general answer that does not take into account the specific situation.
– Brythan
24 mins ago
add a comment |Â
up vote
1
down vote
up vote
1
down vote
Do we have an authoritative reference on this?
IRS Publication 505 provides Estimated Tax info. The exact quote from page 3 is:
You should try to have your withholding match your actual tax liability. If not enough tax is withheld, you will owe tax at the end of the year and may have to pay interest and a penalty.
See page 48 for examples about penalties and interest.
answered 3 hours ago
Bob Baerker
11.7k11743
Do we have an authoritative reference on this?
IRS Publication 505 provides Estimated Tax info. The exact quote from page 3 is:
You should try to have your withholding match your actual tax liability. If not enough tax is withheld, you will owe tax at the end of the year and may have to pay interest and a penalty.
See page 48 for examples about penalties and interest.
answered 3 hours ago
Bob Baerker
11.7k11743
answered 3 hours ago
Bob Baerker
11.7k11743
answered 3 hours ago
Bob Baerker
11.7k11743
answered 3 hours ago
Bob Baerker
11.7k11743
11.7k11743
1
This doesn't address the question. Question: if I don't owe the penalty, do I owe interest? Your answer: you may owe interest and a penalty. But the question presumes that a penalty is not owed. The asker already knows that interest and penalties are possible but specifically asks about a suggestion when a penalty is not charged (because no tax was owed the previous year). You've answered a specific situation with a general answer that does not take into account the specific situation.
– Brythan
24 mins ago
add a comment |Â
1
This doesn't address the question. Question: if I don't owe the penalty, do I owe interest? Your answer: you may owe interest and a penalty. But the question presumes that a penalty is not owed. The asker already knows that interest and penalties are possible but specifically asks about a suggestion when a penalty is not charged (because no tax was owed the previous year). You've answered a specific situation with a general answer that does not take into account the specific situation.
– Brythan
24 mins ago
1
1
This doesn't address the question. Question: if I don't owe the penalty, do I owe interest? Your answer: you may owe interest and a penalty. But the question presumes that a penalty is not owed. The asker already knows that interest and penalties are possible but specifically asks about a suggestion when a penalty is not charged (because no tax was owed the previous year). You've answered a specific situation with a general answer that does not take into account the specific situation.
– Brythan
24 mins ago
This doesn't address the question. Question: if I don't owe the penalty, do I owe interest? Your answer: you may owe interest and a penalty. But the question presumes that a penalty is not owed. The asker already knows that interest and penalties are possible but specifically asks about a suggestion when a penalty is not charged (because no tax was owed the previous year). You've answered a specific situation with a general answer that does not take into account the specific situation.
– Brythan
24 mins ago
add a comment |Â
NingNing is a new contributor. Be nice, and check out our Code of Conduct.
NingNing is a new contributor. Be nice, and check out our Code of Conduct.
NingNing is a new contributor. Be nice, and check out our Code of Conduct.
NingNing is a new contributor. Be nice, and check out our Code of Conduct.
Sign up or log in
StackExchange.ready(function ()
StackExchange.helpers.onClickDraftSave('#login-link');
);
Sign up using Google
Sign up using Facebook
Sign up using Email and Password
Post as a guest
StackExchange.ready(
function ()
StackExchange.openid.initPostLogin('.new-post-login', 'https%3a%2f%2fmoney.stackexchange.com%2fquestions%2f100807%2fdoes-irs-charge-interest-for-underpaid-taxes%23new-answer', 'question_page');
);
Post as a guest
Sign up or log in
StackExchange.ready(function ()
StackExchange.helpers.onClickDraftSave('#login-link');
);
Sign up using Google
Sign up using Facebook
Sign up using Email and Password
Post as a guest
Sign up or log in
StackExchange.ready(function ()
StackExchange.helpers.onClickDraftSave('#login-link');
);
Sign up using Google
Sign up using Facebook
Sign up using Email and Password
Post as a guest
Sign up or log in
StackExchange.ready(function ()
StackExchange.helpers.onClickDraftSave('#login-link');
);
Sign up using Google
Sign up using Facebook
Sign up using Email and Password
Sign up using Google
Sign up using Facebook
Sign up using Email and Password
