Interest rates charged by the IRS on underpaid taxes and applied by the IRS on tax overpayments will increase for the second quarter of 2018 (April 1 through June 30). Here are the new rates:
For individuals:
• 5 percent charged on underpayments
• 5 percent paid on overpayments
For corporations:
• 5 percent charged on underpayments
• 4 percent paid on overpayments
• 7 percent charged on large corporate underpayments
• 2.5 percent paid on the portion of a corporate overpayment exceeding $10,000
While these rates don’t seem too bad, this is not the kind of debt you want to carry. Owing back taxes becomes a black hole that takes discipline and a concrete plan to get out from under. There are options for installment agreements and offers in compromise (for those that owe quite a bit), but you need to be ready to commit to a plan and a payment. Keeping your head in the sand will only make this problem bigger.
We can help. We can assist you in getting an installment plan that you can live with and one the IRS will accept. We can go through the process to see if you are eligible for an Offer in Compromise that can significantly reduce the total liability you have with the IRS. You need to act if you are in the situation.
tricia@oconnorcpafirm.com if you are ready to move forward and advocate for yourself instead of hoping this problem will go away….It won’t.
