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IRS Penalty for Underpayments Soars to 8% — Nearly Triple What it was 2 Years Ago
The Internal Revenue Service penalty for tax underpayments has nearly tripled since 2021, putting gig economy workers and consultants at the largest risk of having to cough up big bucks to Uncle Sam.
As of Oct. 1, the IRS will now charge 8% interest on estimated tax underpayments, up from 3% two years ago, according to The Wall Street Journal.
The penalties are largely applied to pay-as-you-go workers who do not have taxes withheld and fail to make estimated quarterly payments before filing their taxes in April.
Read More at the New York Post
