Tax Payment w/ Tax Extension

[Terry Royce]

Hi, all.

We are in between accountants, and working on getting someone new in the mix, otherwise I would touch base with them and get this issue clarified.

My question is, if we file a tax extension, and don't pay all of the taxes owed, what exactly the is the penalty. I am trying to figure out if I should pay what I roughly estimate we owe, or to just wait until our taxes are done, to pay exactly what is owed. I found the below info to be contradictory almost?

Failure to Pay Penalty: If you do not pay your taxes expect to get hit with a "failure to pay" penalty that runs at 0.5% per month with a maximum of 25% of your unpaid tax.- that\'s in addition to any interest you\'ll owe on the balance due.

Interest: If you have a balance due to the IRS after April 15, expect to be charged interest. The interest rate is generally around 8%, which is a lot less than the rate charged by most credit card companies.

From: http://www.investopedia.com/articles/pf/07/taxextension.asp#ixzz3XFUbnCKj

Any info is appreciated!