IRS Charging 8% Interest on Your TAXES.How You Can LEGALLY Avoid Paying & How much They Charge You

IRS Penalty for Underpayments Soars to 8% . Nearly triple what it was 2 years ago. As of Oct. 1, the IRS will now charge 8% interest on estimated tax underpayments, up from 3% two years ago, according to The Wall Street Journal.
The Internal Revenue Service (IRS) is raising the stakes for those who underpay their taxes by ratcheting up the interest penalty that will be assessed in next spring’s tax filing season.
For individuals, the rate for overpayments and underpayments will be 8% per year, compounded daily. Here is a complete list of the new rates:

-8% for overpayments (payments made in excess of the amount owed),
-7% for corporations.
-5.5% for the portion of a corporate overpayment exceeding $10,000.
-8% for underpayments (taxes owed but not fully paid).
-10% for large corporate underpayments.

Under the Internal Revenue Code, the rate of interest is determined on a quarterly basis. For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus three percentage points.

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All content in this video is for education, illustration and entertainment purposes. The advice given should not be taken as legal, nor financial advice.