The IRS is a business and they are in business to make money. That is one of the reasons the IRS does not make interest free loans. As a tax resolution specialist I have people ask me all the time if our firm is able to get the IRS to waive the penalties and interest on their tax debt. I tell them there may be certain circumstances under which the IRS may waive the penalties, but not interest.
The IRS must charge taxpayers interest by law. Think about it this way, if you did not pay taxes for a period of time and took the money you should have used to pay the taxes and invested the money then you would be earning interest on it. Likewise, the IRS is owed money they could be putting to use somewhere else in the economy and could be getting a return on their money. This is a very basic illustration but is does give a good reason why the IRS does not make interest free loans by waiving the interest portion of a tax debt.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment