topic Daily interest on underpayment before or after April 15th in After you file

Daily interest on underpayment before or after April 15th

orangelena — Wed, 19 Feb 2025 03:05:43 GMT

I am reading that IRS charges daily interest on under-payed taxed. I under-payed, have penalties calculated by Turbotax. What I am confused about is that TorboTax shoes my penalties and overall amount due the same between scenarios where I am paying today or April 14th. I thought paying earlier would result in less fees? Thank you

Re: Daily interest on underpayment before or after April 15th

Vanessa A — Wed, 19 Feb 2025 16:49:44 GMT

It does not start to accrue until the day the taxes are due which this year will be April 15th. So, starting on April 16th, if you do not pay, you would see the balance go up.

In general, we charge interest on underpayments starting on the due date of the amount you owe and will continue to accrue until the balance is paid in full:

Tax is due on the return filing date; extensions to file do not extend the date for payment of the tax.

Re: Daily interest on underpayment before or after April 15th

orangelena — Wed, 19 Feb 2025 16:53:36 GMT

thank you. Makes sense.