I Did Not Pay 1099 Quarterly

[Taxing Matters]

Interesting. When you loan the Treasury your money (to help with the runaway national debt) they pay you a little more than 5%. When you owe the Treasury money they charge you 8%. Quite a racket.

That's no different from any other lender. It's also part of what should encourage taxpayers to pay on time as the law requires. The way interest is computed is set by Congress andd has not changed in many decades. Like it or not, when you are late with most any large creditor the interest starts ticking away. Why should it be any different for the government?

 

[davew9128]

The Treasury doesn't charge you interest unless you are delinquent in paying your taxes.

Actually the underpayment penalty for not paying in sufficiently towards the tax liability during the year is effectively interest on the tax balance.