Interest

Interest on IRS Tax Debt

Interest can continue to accrue on unpaid federal tax until the relevant amount is paid or otherwise adjusted. It is important to separate interest from the underlying tax and penalties when reviewing a balance.

Interest is not the same as a penalty

Penalty-relief rules do not automatically erase statutory interest. In some situations an adjustment to tax or penalties can also change related interest, but interest itself is governed by specific rules.

Time matters

The longer a balance remains unpaid, the more additional charges can accumulate. Compare the cost of delay with the affordability of the available payment or resolution options.