If I owe $1600 in taxes, does that mean I owe $400 a month (25% interest) until it's paid off?

lrussell0112 · ‎October 14, 2020

xmasbaby0 · ‎October 14, 2020

What? Where are you seeing that you have to pay 25% interest? Where do you see $400 a month? Is your tax due shown on line 23 of your Form 1040 $1600? You can apply for a payment plan with the IRS.

https://www.irs.gov/payments/online-payment-agreement-application

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

Anonymous · ‎October 14, 2020

my guess is the 25% id 25% of the total due.

taxpayer. the $1600 was due 7/15/2020. if you filed an extension you are incurring penalties of .5 % month + interest from 7/15/2020 until paid off if you did not file an extension the penalties are 5% a month from 7/15/2020 for up to 5 months (after 5 months the penalty falls to .5%) + interest until paid off

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If I owe $1600 in taxes, does that mean I owe $400 a month (25% interest) until it's paid off?