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
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

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

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

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