Submitted By: someone
Answered: August 27, 2020 10:38 pm

I’m having trouble paying my taxes. What interest does the IRS charge on the outstanding amount?

The IRS interest rate on underpayments is set quarterly. For the third quarter of 2020 (July 1 through September 30), the rate for an individual is 3%. Interest compounds daily. It’s wise to request an installment payment agreement to get outstanding taxes under control. Interest will continue to accrue on the balance, but eventually, the debt will be gone.

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Tax Glossary

Qualifying widow or widower

A filing status entitling the taxpayer with dependents to use joint tax rates for up to two tax years after the death of a spouse.

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