Hello,
I previously filed for extension and am planning to file my taxes this Friday. I owe taxes and will need to pay interest on the amount I owe. To minimize that, here are my options:
1. File by mail and I will include a check on the tax payment. It will take the longest for IRS to process my return, but what date will count from interest penalty perspective, will interest penalty be calculated from the date stamped on the mail, or will be based on the date IRS actually cashes the check.
2. E-file with electronic withdrawal. Same question here, will the interest penalty be calculated based on filing date or the date that the withdrawal is actually processed, which will be 7-10 days after tax is accepted.
3. Pay directly online via the IRS website, then modify tax return to reflect this payment and effectively the dollar owed on the return will be 0.
4. E-file without paying, but after E-file, pay immediately on IRS website.
Which one is the best option? I’d like to pay minimum interest penalty while keep money in my bank account for the longest.
