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> If more people owe money as opposed to getting a refund, there is more incentive to pay later. An extension doesnt change when the taxes are due.
by refurb 2y ago
> If more people owe money as opposed to getting a refund, there is more incentive to pay later.
An extension doesnt change when the taxes are due.
- rdtsc 2y agoAh that’s true. Failure to pay is 0.5 percent of the unpaid balance per month. Are there investments that pay more to make it worth it? Maybe it about not wanting to eat stock loss yet having to sell in what looks like a bad market if they plan on using that to pay taxes.
- refurb 2y agoThe current penalty is 7% interest on unpaid amounts. Back when interest rates were low, it was 2-3% which you could easily beat, but 7% is tougher.
- PopAlongKid 2y agoYou are mistakenly conflating interest (which can go up or down every quarter and is charged daily, like an unpaid credit card balance) and penalties (which are a fixed amount per month set by law up to a maximum number of months). Most importantly, both of them apply if there is a failure to pay (FTP) by the original due date.
- deleted 2y ago[deleted]
- refurb 2y agoI am aware there is a difference. Most people would fall under the "underpayment" scenario since taxes are deducted on their W2, which is just interest on the underpayment.