Unpaid taxes will soon start costing you even more. The Internal Revenue Service announced recently that the interest rate will increase to 4% on underpayments and 6% for large corporate underpayments beginning April 1, 2022.
Generally, interest accrues on any past-due IRS back taxes, including both balances and penalties, from the due date of the return until the date of payment in full. The interest rate is determined quarterly and compounds daily.
In addition to interest, penalties can also begin to rack up, making it harder to get back track. If you are dealing with unpaid taxes and facing IRS collection enforcement, contact us to see how we can help. Larson Tax Relief’s licensed tax relief professionals will make sure you don’t pay a penny more than you legally owe – and on terms that work for you. We pride ourselves in providing our clients with the absolute best customer service and resolution strategies in the nation.