They are reviewing my amended return that I filed due to an audit, and the IRS site is telling me to allow 60 days for a final decision to be made. While I am waiting, is interest I have to also pay building? Or do they freeze that during this time because there’s no confirmation on what I owe yet? Or should I just send them the money my amended return says I owe to avoid interest? Please don’t just answer the last question without answering the first one.
I have amended my returns due to an audit, so is interest owed to them building while I wait for an answer?
byu/hereforthesportsball intax
Posted by hereforthesportsball
3 Comments
Technically you are owing interest since 4/15 if you owe money. Until the day you pay
Simply put, it’s retroactive.
If you are owed additional funds, you will receive interest starting 45 (?) days after the original filing date. Normally, 4/15.
If you owe more from the audit or adjustment, interest and penalties begin 4/16.
So, if you owe, and can afford to do so, you should pay as much as possible, as soon as possible.
Interest accrues continuously until the taxes owed are paid. The amount can be in dispute, and if the amount goes down, any interest associated with the decrease will also go away. But any underlying liability will continue to accrue interest until it is paid. You can submit a payment now and they will send back the excess eventually if you overpaid.