Back Taxes Penalties and Interest Rates in 2017

21. September 2017 18:32 by Zach Haris in

When it comes to interest rates, they can fluctuate by the quarter. While the Internal Revenue Service (IRS) typically issues a press quarterly press stating any information regarding the interest rates, it’s still the taxpayer’s responsibility to keep themselves updated—especially if you owe any back taxes, because overpayments will be penalized as well.

As of April 1, 2017, the IRS reported that the interest rates for the second quarter is as follows:

  • 4% for overpayments
  • 3% overpayment fee for corporations
  • 5% overpayment fee that exceeds $10,000 for corporations
  • 4% for underpayments
  • 6 % for underpayment for large corporations

As the second quarter is winding down to an end, the professionals at the Max Financials Taxation and Advisory want you to be aware of the current interest penalties before the new quarter begins.

Keeping Up With the Quarterly Interest Rate Fees

The IRS does not have their interest rate fees posted for the third quarter at this time. The moment they do, you can look to Max Financials Taxation and Advisory to swiftly provide you with the information you’re looking for.

Percentage Points

Another thing to keep in mind when it comes to penalties and back taxes is that while the interest rate may change every quarter, the fees of the over and underpayment rate are also added on with three percentage points. This excludes corporations. With corporations, the under and overpayment rate is a little different. The overpayment rate is 2 percentage points while the underpayment rate is 5 percentage points—in addition to the federal short-term rate.

Finding the Help You Need to Keep Up With It All

Keeping up with quarterly interest rates can easily be forgotten whether you’re operating a business or just managing your personal taxes. Max Financials Taxation and Advisory have over three decades of experience helping people resolve their tax debt and even eliminating it altogether. We have a competent and talented team of tax lawyers, accountants, CPA, and tax preparers on hand to handle your case and keep your payments up-to-date, preventing any under or overpayments that will lead to an inflated balance.

Max Financials Taxation and Advisory. Your Help

Our team also provides consultation services that will help keep you out of debt. Our new service, Max Financials Taxation and Advisory is designed to help taxpayers repair their credit report. For those who are looking to start their own business, but can’t due to a low credit score, the team at Max Financials Taxation and Advisory will help you improve your credit score with Max Financials Taxation and Advisory, and we’ll also help you open up a line of business credit by helping you apply for an EIN number that works as a social security number for business owners. With an EIN number, you’ll be able to apply for lines of credit.

Through Max Financials Taxation and Advisory, we are fully up to date on all of the quarterly tax penalties and can ensure that your payments are correct.


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