/24-7PressRelease/ - NORTH CHARLESTON, SC, July 13, 2007 - The Internal Revenue Service recently announced there will be no change in interest rates for the current calendar quarter.
While this may seem like good news, JK Harris & Company representatives still encourage taxpayers to pay their IRS liability as quickly as possible so those interest rates don't become an issue.
"Beyond the tax liability, the sooner the balance gets paid, the less interest is charged," said Bill Wandel, a Certified Public Accountant and Licensed Taxpayer Representative with JK Harris who has more than 30 years experience in private and public accounting. "The interest rates themselves are subject to change every quarter. They can either go up or down. However, it is always best to pay the liability as soon as possible to stop the interest from compounding and accruing."
Although the interest rates have stayed the same for this quarter, the IRS compounds this interest daily. Basically, that means that interest is calculated on a new accrued balance every day. And that balance grows each day by the amount of the compounded interest that is added to the outstanding balance.
The current interest rates are as follows:
* Eight (8) percent for overpayments [seven (7) percent in the case of a corporation];
* Eight (8) percent for underpayments;
* Ten (10) percent for large corporate underpayments; and
* Five and one-half (5.5) percent for the portion of a corporate overpayment exceeding $10,000.
According to Wandel, the IRS also charges penalty interest on the unpaid tax portion of the balance in the amount of one-half of a percent per month, for up to the first 40 months.
"It is incumbent upon the taxpayer to first pay the outstanding tax balance as soon as possible to eliminate the penalty interest from continuing to be assessed," Wandel said.
About JK Harris:
JK Harris & Company, LLC, (www.jkharris.com) based in North Charleston, S.C., is the nation's largest tax resolution firm and has served over 170,000 customers since its founding in 1997 by John K. Harris. JK Harris consultants are available to meet with consumers in over 450 locations nationwide by appointment only. The company also provides services for consumer and commercial debt, student loan debt, investment fraud, financial planning, tax return preparation, and audit representation.
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