Information About Your Notice, Penalty and Interest
Information About Your Notice, Penalty and Interest

Feel Free Read Information About Your Notice, Penalty and Interest PDF

Beginning January 1, 1999, the interest rate we pay on any overpayment of taxes, except for corporate taxes, is the same as the rate of interest we charge on the underpayment of taxes. The law requires us to determine these interest rates quarterly. From January 1, 1987 through December 31, 1998, the interest rate we paid on an overpayment of taxes was one percent less than the rate of interest we charged on your underpayment of taxes. Effective January 1, 1995, we pay a reduced rate of interest on corporate overpayments that exceed $10,000. This reduced rate is the short-term federal interest rate, plus 1⁄2%. We compound interest About Your Notice You may call your local IRS telephone number if the number shown on your notice is a long-distance call for you. All days mentioned in the paragraphs below are calendar days, unless specifically stated otherwise. Removal of PenaltiesReasonable Cause. The law lets us remove or reduce the penalties we explain in this notice if you have an acceptable reason. If you believe you have an acceptable reason, you may send us a signed statement explaining your reason. We will review it and let you know if we accept your explanation as reasonable cause to remove or reduce your penalty. This procedure does not apply to interest.

  • Released: November 16, 2020
  • Author: Internal Revenue Service (IRS) Department of the Treasury
  • Rating: 5
  • Publisher: Ebook DIgital Agency
  • Total Page: 1008 pages
  • File Size: 3670 KB

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