If tax was owed on April 18, 2016 and a payment of an estimate equal to or greater than the tax owed, penalties and interest will be charged by the IRS. Generally, interest will accrue from the due date of the return until the date the tax is paid in full. The interest rate is set every quarter and is equal to the federal short term interest rate plus 3%. The IRS compound interest daily. If the full amount of tax owed wasn’t paid on April 18th, the IRS will also charge .5% for each month or part of
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