IRS Interest Going Up to 8%

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The IRS is raising the interest rate to 8% on estimated tax underpayments.

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Mike Bernard, CFP® offers advisory services through KFG Wealth Management, LLC dba Korhorn Financial Group. This information is for general financial education and is not intended to provide specific investment advice or recommendations. All investing and investment strategies involve risk, including the potential loss of principal. Asset allocation & diversification do not ensure a profit or prevent a loss in a declining market. Past performance is not a guarantee of future results.
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Depends on your perspective. The one time I was audited about 30 years ago and owed money (due to an error made by a CPA who claimed no responsibility) and interest on it, the rate was 18%. And of course the audit was 2 years after the tax year so lots of compounding. 8% sounds good in comparison. However your base theory of trying to not owe the IRS anything is spot on.

brucealvarez