4 ms·
You 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
by PopAlongKid 2y ago
You 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.