don't fear the taxman
August 11, 2010 6:53 AM   Subscribe

Anyone know what interest rate that the IRS charges on back taxes? Can't find this info anywhere. Thanks.
posted by bunny hugger to Work & Money (4 answers total) 1 user marked this as a favorite
 
Best answer: Can find the IRS rates here.
posted by Admiral Haddock at 6:54 AM on August 11, 2010 [1 favorite]


I should add, as well, that the "federal short-term rate" is the short-term applicable federal rate (AFR). For August 2010, that rate is .53% compounded quarterly, so individuals would be subject appear to be subject to an underpayment rate of 3.53% compounded quarterly.

You should consult a tax attorney or accountant to confirm. Or call the IRS. Additional penalties may apply. I am not your lawyer, and this not legal advice.
posted by Admiral Haddock at 6:58 AM on August 11, 2010


Response by poster: Thanks, yeah, this person (not me, honest!) is on an installment plan already. He's trying to decide if it's better to put remaining amount owed on credit card or not - basically, which apr is higher.
posted by bunny hugger at 7:04 AM on August 11, 2010


Best answer: My IRS installment plan statement says "For information on your penalty and interest calculations, you may call 1-800-829-8374."
posted by nicwolff at 10:32 AM on August 11, 2010


« Older Recommendations for free iPhone Cases?   |   Craig's List advice Newer »
This thread is closed to new comments.


Tags

Share