How to Avoid Penalties and Interests on Future Taxes

This is an important message to inform you that the IRS has increased penalties and interest for failure to pay proper estimated tax and tax payments. We’d like to share information to help prevent penalties and interest for future tax seasons.

1. Quarterly Estimated Payments:
   We strongly recommend making estimated payments quarterly throughout the year to prevent interest and penalties.
2. Tax Payment Deadline:
   Make tax payments, at least 90% owed to avoid penalties (not interest), by April 15. The October 15 extension only extends the filing deadline, not the payment deadline.
3. Interest and Penalties:
   Failure to make payments on time will accrue 8% annual interest, compounded daily, and a 0.5% monthly late payment penalty roughly 14% annual rate.