I know I'm behind on posting, and I'll get back on it ASAP.
Important personal question I want to put out to the masses. I filed my taxes on October 15th, but failed to send in the check. I realized it pretty quick and remedied that, but they slapped with interest that amounted to 30% and 36% annualized, on the balance. I think they're going to give me a pass at the end of the day, but my question is... How can the state Department of Revenue charge a 36% interest rate when the same state's Statutory Maximum Interest Rate under their usury statute is 16%?
Surely someone has brought this up before, and I don't have a lot of experience being late on my taxes, so what's the catch?
UPDATE: The IRS does this as well, apparently. The interest rate for filing late is 5% per month, or 79.6% annualized. This seems like it would violate every states' usury law, and is extremely harsh. I'm sure it normally gets negotiated, by is it legal?