The IRS reminds us using Tax Tip 2021-51 that our filing status is determinate on December 31 of each tax year, and a description of each filing status! Taxpayers need to know their correct filing status and be familiar with each option. The IRS Interactive Tax Assistant can help them det...

An excellent expose on a US persons obligation to report their foreign asset holdings/ foreign accounts on FBAR Form 114, FATCA Form 8938, the variety of penalties imposed for failure to do so and the remedies available to fix these delinquent reporting requirements. EXECUTIVE SUMMARY ...

The IRS explains in Tax Tip 2021-82 how getting married can affect your US income tax filings, from changing your name, addresses, changing your withholdings and adjusting your filing status. The arrival of summer is also the start of wedding season. Marriage changes many things and taxes...

IRS explains in Tax Tip 2021-23 the application of IRC Sec 121- Exclusion of Gain on Sale of a Principal Residence, $250,000 per spouse--keep in mind that the home must be your Main Home and you must BOTH Own and Live in it or use it for at ;least 2 years, 34 months or 730 days in the 5 ye...

IRS reminds us that the Tax year 2017 is about to fall off the table on May 17, 2021, 1.3 billion in unclaimed refunds are waiting…. The last date to file a claim for refund is the later of 3 years from the extended due date of the tax year filing or 2 years after the tax was paid. Uncl...

In a similar finding to the district court in the matter of Bittner (DC TX 6/29/2020), the Court of Appeals for the Ninth Circuit on March 26, 2021 ruled that the IRS can impose only one non-willful penalty under 31 USC 5321(a)(5)(A) when an untimely, but accurate, Report of Foreign Bank a...

The Fourth Circuit affirmed penalties for a taxpayers failure to file Financial Crimes Enforcement Network (FinCEN) Form 114, Report of Foreign Bank and Financial Accounts (FBAR) were ‘willful’ despite there claim to be unaware of the requirement! The Court found them to be ‘objectiv...

IRS reminds us that we have until April 15, 2021 of this 2020 tax year to make a $6,000 (with catchup for age 50 to $7,000) IRA contributions- Traditional or ROTH IRA for the 2019 tax year, don’t be late! The Internal Revenue Service notes that taxpayers of all ages may be able to claim...

FinCEN (Financial Crimes Enforcement Network) on December 31, 2020 advised filers that although accounts holding virtual currency are not currently considered a reportable account, it to pros=pose shortly changes that will require virtual currency accounts reportable under 31 CFR 1010.350(...

The district court in the matter of Bittner (DC TX 6/29/2020), concluded that the penalty for a non-willful FBAR violation relates to each FBAR Form 114 not timely or properly filed rather than to each foreign financial account maintained but not timely or properly reported. Only time wil...

As we have warned in the past ITIN’s not used at least once every 3 years and 5 years after issuance now expire, the following applies to the 2020 tax year for returns filed in 2021. The later requirement will affect ITINs with middle digits of 88, 90, 91, 92, 94, 95, 96, 97, 98 or 99, i...

On September 24, 2019 the IRS released IR-2019-158 containing Revenue Procedure 2019-38 that contained a safe harbor which would allow a rental activity to be treated as Qualified Business Income for the purposes of IRC Sec 199A. This Safe Harbor contains a 250 hour requirement, however If...

Every tax year the IRS reminds us of Hobby Loss deductibility restrictions, please keep these in mind when preparing your US income taxes!! Whether it’s something they’ve been doing for years or something they just started to make extra money, taxpayers must report income earned from ...

The IRS does an excellent job at explaining and advising on the American Opportunity Tax Credit (AOTC) and the Lifetime Learning Credit (LLC). Whether it’s online, in-person, part-time or full-time, higher education can be expensive. The good news is there are tax credits that can help ...

Major IRS milestone helps taxpayers correct tax returns with fewer errors, speeds processing The IRS announces in IR-2020-182 as we reported on May 27, 2020 that the ability to for Amended efiling starting with the 2019 tax year only, is now a reality and is effective and in place effecti...

IRS reminds us that the Tax year 2016 is about to fall off the table on July 15, 2020, 1.5 billion in unclaimed refunds are waiting…. The last date to file a claim for refund is the later of 3 years from the extended due date of the tax year filing or 2 years after the tax was paid. Unc...

IRS reminds us that we have until July 15 of this 2020 tax year to make a $6,000 (with catchup for age 50 to $7,000) IRA contributions- Traditional or ROTH IRA for the 2019 tax year, don't be late! The Internal Revenue Service today reminded people that contributions to traditional Indivi...

Finally…the IRS announces in IR-2020-107 that starting this summer of 2020 they will begin to allow for Amended efiling starting with the 2019 tax year only, a long awaited and overdue change that should dramatically speed up the processing times of filing amended tax returns hat have st...

The case of the U.S. vs Brian Nelson Booker a Florida based CPA the first person criminally charged by the Department of Justice (DOJ) with allegedly making false statements in connection with the IRS’s Streamlined Domestic Offshore Program (SDOP), reminds us that filing a Streamlined su...

The IRS has issued Rev Proc 2020-17, 2020-12 IRB, that exempts from information reporting requirements certain tax-favored foreign trusts that are established and operated exclusively or almost exclusively to provide pension or retirement benefits, or to provide medical, disability, or e...

The IRS explains to parents of adopted children that taxpayers who adopted or started the adoption process during 2019 should review the rules around the adoption credit and the amount of the credit increases for qualified taxpayers, the rules remain the same. Taxpayers who adopted or sta...

The IRS explains the Child Tax Credit (CTC) with phase out ranges STARTING at $400,00 for married filing joint filers.  The IRS reminds us of what the parameters for claiming the CTC starting in January 1 of 2019. Taxpayers may be able to claim the child tax credit if they have a qualify...

The IRS wants you to know that they have combined forces with the United Kingdom (UK), United States (US), Canada, Australia and the Netherlands to catch offshore tax evasion as a result of an international financial institution located in Central America, whose products and services are b...

The IRS explains how the Gig economy- (also called sharing economy or access economy—is activity where people earn income providing on-demand work, services or goods. Often, it’s through a digital platform like an app or website..) is taxed, so timely and relevant in today's changing w...

The IRS explains how the receipt of your tax season refund can be affected by many factors, including whether you efile or paper file, theft ID and whether you claim the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC) do not expect your refund before mid-February. As...

The IRS reminds us what we can do int eh event of a natural disaster to reconstruct our records, some tips to keep in mind when we may apply for federal assistance or insurance reimbursements! After a natural disaster, taxpayers may need records to help them prove their disaster-related l...

What the IRS wants teachers from Kindergarten to 12th grade to know about unreimbursed expenses that they incur for the classroom. Now that fall is here and school has started, many teachers are dipping into their own pockets to buy classroom supplies. Doing this throughout the year can a...

The IRS reminds us that our filing status is determinate on December 31 of each tax year, and a description of each filing status! When a taxpayer files their tax return, they need to know their filing status. What folks should remember is that a taxpayer’s status could change during th...

The IRS is aware that some taxpayers with virtual currency transactions may have failed to report income and pay the resulting tax or did not report their transactions properly.  Therefore for the first time since 2014 the IRS has released two new pieces of guidance for taxpayers who enga...

Some excellent recourses available by the IRS when it comes to charitable giving!  Is the charitable organization a legit US registered charity, how to fair value items, rules on deductibility, and non-cash donations. Taxpayers who donate to a charity may be able to claim a deduction on ...

With the signing of the TCJA 2017 legislation on December 22, 2017 to become effective as at January 1, 2018 the Child Tax Credit (CTC) took on a whole new life.  With new phase out ranges STARTING at $400,00 for married filing joint filers, it was not uncommon this past 2018 tax season t...

The Child and Dependent Care Credit may come into play when the Child Tax Credit does not, learn who qualifies, the maximum credit available, the type of care that qualifies, and the provider information required to claim the credit. Taxpayers with dependents may qualify to claim a few di...

The IRS does an excellent job at comparing and contrasting the American Opportunity Tax Credit (AOTC) and the Lifetime Learning Credit (LLC). There are two education credits that can help taxpayers with higher education costs: the American opportunity tax credit and the lifetime learnin...

If you pay for college in 2018, you may receive tax credits for education on your federal tax return.  Even if you’re studying outside of the U.S. the American Opportunity Tax Credit (AOTC) and the Lifetime Learning Credit (LLC) may reduce the amount of tax you owe, but only the AOTC is...

With the passage of the 2017 TCJA legislation signed into law on December 22, 20917 we are reminded of the tax law changes related to alimony and separation payments as applicable to 2019 US tax filings.  Beginning Jan. 1, 2019 alimony or separate maintenance payments are not deductible f...

As we warned you on July 25, 2019 at the end of 2019 (to file for 2019 tax returns in 2020) ITINs expire after not being used at least once in the last 3 tax years, as well as ITINs with middle digits of 83, 84, 85, 86 or 87 expire. Taxpayers with expiring individual taxpayer identificat...

What the IRS wants taxpayers to know about filing mistakes on their tax returns.  Taxpayers can fix mistakes or omissions on their tax return by filing an amended tax return. If you need to amend, the following tips should prove helpful to you. Although the IRS often finds and corrects e...

In 2019, the United States and the French Republic memorialized through diplomatic communications an understanding that the French Contribution Sociale Generalisee (CSG) and Contribution au Remboursement de la Dette Sociate (CRDS) taxes are not social taxes covered by the Agreement on Soci...

As previously blogged back on March 22, 2019, Protax warned that under The Fixing America’s Surface Transportation Act (FAST Act), P.L. 114-94, adding Sec. 7345, which authorizes the IRS to certify to the secretary of State that when a taxpayer is seriously delinquent with his or her tax...

The IRS explains with tax tip 2019-116 that when you start a business you have options as to the business structure, Sole proprietorship, Partnership, Corporation, S corporation and LLC.  Also you can choose your year end, it does not have to be December 31. Starting a business can be ve...

How the TCJA 2017 act severely limited Itemized Deductions starting on January 1, 2018, while eliminating the phaseout entirely.  Gone are unreimbursed employee expenses, investment expenses and personal casualty & theft losses unless the casualty is declared a federal disaster area b...

What happens when your CPA gets hacked, and your data is compromised, what the IRS Mandates we must do as professional CPA’s to protect the general public and your data.  Contact the IRS and law enforcement, contact the states in which you prepare returns, contact experts and contact cl...

Please remember at the end of 2019 (to file for 2019 tax returns in 2020) ITINs expire after not being used at least once in the last 3 tax years, as well as ITINs with middle digits of 83, 84, 85, 86 or 87 expire! Nearly 2 million Individual Taxpayer Identification Numbers (ITINs) are se...

FinCEN makes it clear that regulations (31 C.F.R. §1010.350(c)) do not define virtual currency held in an offshore account as a type of reportable FBAR Form 114 account. Tax practitioners and taxpayers alike have long grappled with whether virtual currency, aka cryptocurrency, is report...

When you start collecting Social Security can have a significant impact on the monthly benefit you receive, the moral of the story is although you can start collecting at age 62 the longer you wait until Full Retirement Age (FRA) (anywhere from age 65-67) up to age 70 due to the Delayed Re...

IRS explains the application of IRC Sec 121- Exclusion of Gain on Sale of a Principal Residence, $250,000 per spouse--keep in mind that the home must be your Main Home and you must BOTH Own and Live in it or use it for at ;least 2 years, 34 months or 730 days in the 5 year window prior to ...

The IRS reminds taxpayers who is eligible for a home office deduction, the types of expenses they may claim and the methods available to claim home office deductions. Small business owners may qualify for a home office deduction that will help them save money on their taxes, and benefit ...

What the IRS wants taxpayers to know about filing mistakes on their tax returns.  Taxpayers can fix mistakes or omissions on their tax return by filing an amended tax return. If you need to amend, the following tips should prove helpful to you. Taxpayers who discover an error after filin...

The IRS re-introduces us to IRS Form 8300 required to be filed for all cash transactions in excess of $10,000 that occur in a trade or business. Federal law requires a person to report cash transactions of more than $10,000 to the IRS. Here are some facts about reporting these payments. ...

IRS reminds taxpayers of the Form 114 FBAR, Form 8938 Statement of Specified Foreign Financial Asset filing deadlines, not to worry as these are generally extended beyond April or June 2019 all the way to October 15, 2019.  Also of mention is the now defunct OVDP program and Streamlined. ...

The IRS reminds taxpayers what happens in the event they decide to  raid their retirement plans---early withdrawals may be taxable or non taxable and subject to penalty. Taxpayers may need to take money out of their individual retirement account or retirement plan early. However, this ca...

The IRS reminds us that since taxpayers can no longer claim personal exemptions for dependents on their tax returns, other reasons why we may want to claim dependents. As they are preparing their 2018 tax returns, taxpayers should remember that personal exemptions are suspended for 2018. ...

On February 12, 2019 we reported that the IRS announced that Tesla, Inc. had sold more than 200,000 vehicles eligible for the plug-in electric drive motor vehicle credit during the third quarter of 2018.This triggered a phase out of the tax credit available for purchasers of new Tesla plug...

Federal Appeals overturns a 2017 Federal District court decision (launched by 700,000 in a class action suit, mainly non licensed nonprofessional tax outfits) that the IRS had no authority to charge a fee to tax preparers to obtain a PTIN.  The case centered around that "… the assessmen...

The IRS reminds taxpayers that, in most cases, Monday, April 1, 2019, is the date by which persons who turned age 70½ during 2018 must begin receiving payments from Individual Retirement Accounts (IRAs) and workplace retirement plans.  The payments are called required minimum distributio...

The IRS warns taxpayers to be alert to tax time phone scams where aggressive criminals pose as IRS agents in hopes of stealing money or personal information. Phone scams or “vishing” (voice phishing) continue to pose a major threat. IRS YouTube Videos: Tax Scams – English | Spanis...

The IRS explains how its database is linked to that of the US Social Security Administration and what you have to do if you change your name! When someone legally changes their name, there are tax consequences they need to know about., especially at tax time. People change their names for...

As previously blogged back in February of 2019, Protax warned that under The Fixing America’s Surface Transportation Act (FAST Act), P.L. 114-94, adding Sec. 7345, which authorizes the IRS to certify to the secretary of State that a taxpayer is seriously delinquent with his or her taxes....

The TCJA 2017 legislation and how it affects US expats, how to qualify for the exclusions, State tax laws when moving overseas and how to let the IRS know! Whether you are moving abroad to study, travel, put up a business, or work, one of the many things you should not forget to do is to ...

IRS explains the Individual Retirement Account (IRA) different types, their purpose, deductibility, taxability, rollovers and when you are required to withdraw funds called a Requirement Minimum Distribution or RMD. Individual Retirement Arrangements – better known simply as IRAs – a...

IRS explains how the December 22, 2017 TCJA 2017 dropped the backup withholding tax rate from 28% to 24%, backup withholding occurs when the payer does not have the taxpayers correct ITIN or SSN, or fail to certify that they are not subject to backup withholding. The IRS urges taxpayers w...

The Tax Cuts and Jobs Act (TCJA), also called the 2018 tax reform, is the most drastic change to the Internal Revenue Code in over 30 years. When it comes to expats, most of the key changes brought on by TCJA have little or no effect given that the chief expat benefits like the foreign e...

IRS explained the changes to the Child Tax Credit that will now apply to many more US filers as a result of the TCJA 2017 legislation as it pertains to individuals filers. Many people claim the child tax credit to help offset the cost of raising children. Tax reform legislation enacted l...

An excellent synopsis of the major TCJA 2017 legislation affecting Individuals for the upcoming 2018 (performed in 2019) tax season, as well as some expired adjustments that congress never extended. Terrific read. Return preparers must be ready for how the Tax Cuts and Jobs Act has modifi...

The IRS announced that Tesla, Inc. has sold more than 200,000 vehicles eligible for the plug-in electric drive motor vehicle credit during the third quarter of 2018. This triggers a phase out of the tax credit available for purchasers of new Tesla plug-in electric vehicles beginning Jan. 1...

As previously blogged back in February of 2018, Protax warned that under The Fixing America’s Surface Transportation Act (FAST Act), P.L. 114-94, adding Sec. 7345, which authorizes the IRS to certify to the secretary of State that a taxpayer is seriously delinquent with his or her taxes....

IRS announces that as a result of the major legislative changes as a result of the TCJA of 2017 it is modifying the safe harbor test for the estimated tax penalty calculated on Form 2210 for any taxpayer who paid at least 85 percent (versus the current rule of 90%) of their total tax liabi...

While the TCJA of 2017 eliminated the Schedule A deduction for Foreign Real Estate taxes, Foreign Real Estate taxes form part of the Qualified Foreign Housing expenses that qualify for the Housing Exclusion if employed or Housing Deduction if self-employed?  But you first need to qualify ...

How the TCJA 2017 act severely limited Itemized Deductions starting on January 1, 2018, while eliminating the phaseout entirely.  Gone are unreimbursed employee expenses, investment expenses and personal casualty & theft losses unless the casualty is declared a federal disaster area b...

How businesses can prevent record loss in the event of a disaster, some tips to keep in mind! When disaster strikes, many business owners might find themselves needing to reconstruct records. This will help them prove a loss, which may be essential for tax purposes, getting federal assist...

One of the significant changes that the TCJA 2017 brought to bear on December 22, 2017 was that is changed on what property a Like Kind 1031 Exchanges qualify. The Internal Revenue Service today reminded taxpayers that like-kind exchange tax treatment is now generally limited to exchanges...

Though time has run out for taxpayers to make a complete disclosure and avail themselves of the program benefits of the Offshore Voluntary Compliance Program (OVDP) for Willful taxpayers as of September 28,. 2018, taxpayers can still voluntarily reveal their offshore assets and in the case...

56,000 taxpayers later amounting to 11.1 billion dollars the Offshore Voluntary Compliance Program (OVDP) for Willful taxpayers who have not reported all of their income, and or FBARs Form 114 and/ or FFA on Form 8938 has come to an end on September 28, 2018.  Have no worry the Streamline...

US Expats with non US corporations, hold your hats…..The TCJA of 2017 imposed not only a one time "deemed repatriation tax" or 'transition tax' of 15.5% on untaxed foreign earnings or business profits accumulated overseas from 1986- 12/31/17 held in cash or cash-equivalents and 8% for pr...

US Expats with non US corporations, hold your hats…..The TCJA of 2017 imposed a one time "deemed repatriation tax" or 'transition tax' of 15.5% on untaxed foreign earnings or business profits accumulated overseas from 1986- 12/31/17 held in cash or cash-equivalents and 8% for profits hel...

Tax year 2014 is about to fall off the table - the last date to file a claim for refund is the later of 3 years from the extended due date of the tax year filing, or 2 years after the tax was paid. Unclaimed federal income tax refunds totaling about $1.1 billion may be waiting for an esti...

FinCEN clarifies that, in line with the due dates for federal income tax returns,  (normally April 15 this year but April 15 falls on a Sunday and April 16 is Emancipation Day in DC) for the 2017 tax season the FBAR Form 114 is due on April 17.  Additionally, there is an automatic extens...

Congress and the Senate does it to taxpayers and CPA's again, with the Bipartisan Budget Act after tax season is well under way, the 2017 tax forms released and finalized - three benefits were renewed on February 22, 2018! The Internal Revenue Service today said that it is ready to proces...

Just when you thought that the recent The Tax Cuts and Jobs Act of 2017 prevented claiming home equity line of credit (HELOC) interest, think again! The Internal Revenue Service today advised taxpayers that in many cases they can continue to deduct interest paid on home equity loans. Res...

Shame on the IRS. Court rules that whether the individual willfully failed to submit an accurate FBAR was an inherently factual question that could not be resolved by summary judgment, since this deals with intent of the taxpayer. The IRS was not entitled to summary judgment on the issue ...

The national Taxpayer Advocate Nina Olson to the rescue - Ms. Olson issues Taxpayer Assistant Orders TAO's for almost 800 taxpayers whose cases were with the Taxpayer Advocate Services office that Ms. Olson oversees as the National Taxpayer Advocate. On January 16, 2018 July 24, 2017, Apr...

On January 16, 2018 the IRS further warned that Travelers Requiring Passports to Pay Their Back Taxes or Enter into Payment Agreements; People Owing $51,000 or More Covered.  This month, the IRS will begin implementation of new procedures affecting individuals with “seriously delinquent...

Please remember at the end of 2017 (to file for 2017 tax returns in 2018) ITINs expire after not being used for 3 tax years, as well as ITINs with middle digits of 70, 71, 72 or 80!  ITINs that have middle digits of 78 or 79 expired on December 31, 2016. Taxpayers with an expired Individ...

Beware U.S. Expats!  On December 14, 2015 and then again on April 1, 2016 we reported that under The Fixing America’s Surface Transportation Act (FAST Act), P.L. 114-94, was added Sec. 7345, which authorizes the IRS to certify to the secretary of State that a taxpayer is seriously delin...

Did you know that you can use the foreign tax credit on qualified dividends but that you need to calculate the amount of foreign tax credit that the taxpayer can offset against his U.S. tax liability? Foreign-source qualified dividends may require certain adjustments to those amounts befor...

Every tax year the IRS reminds us of our Rights as Taxpayers. Please keep these in mind as we navigate together the slippery slope of dealing with the IRS! Get to Know Your Taxpayer Bill of Rights Every taxpayer has rights. The Taxpayer Bill of Rights takes these rights from the tax code...

H.R. 1, known as the Tax Cuts and Jobs Act, which both houses of Congress passed on Dec. 20 starting for 2018 will significantly alter the taxation of individuals starting for tax year 2018.  We have outlined the differences between current law and the conference report.  This table comp...

H.R. 1, known as the Tax Cuts and Jobs Act, which both houses of Congress passed on Dec. 20 starting for 2018 capped the State and local taxes deduction (affectionately known as SALT) : for individuals to deduct up to $10,000 ($5,000 for married taxpayers filing separately).  The big ques...

H.R. 1, known as the Tax Cuts and Jobs Act, which both houses of Congress passed on Dec. 20 starting for 2018 capped the State and local taxes deduction (affectionately known as SALT) : for individuals to deduct up to $10,000 ($5,000 for married taxpayers filing separately).  The big ques...

H.R. 1, known as the Tax Cuts and Jobs Act, which both houses of Congress passed on Dec. 20 starting for 2018 capped the State and local taxes deduction (affectionately known as SALT) : for individuals to deduct up to $10,000 ($5,000 for married taxpayers filing separately).  The big ques...

H.R. 1, known as the Tax Cuts and Jobs Act, which both houses of Congress passed on Dec. 20 starting for 2018 will significantly alter the taxation of individuals starting for tax year 2018.  The following article represents an excellent summary of these new changes and how they will affe...

A terrific read on what Streamlined is and when Streamlined can be used without going to the more over reaching OVDP Offshore Voluntary Compliance Program, including some facts that may not support non-willful behavior.g The Pitfalls of Streamlined Foreign Account Disclosures Tax professio...

Rules have exited for nearly a century (since 1921) under IRC Sec. 6851(d) providing that all resident aliens and certain nonresident aliens must obtain a "Certificate of Compliance" before leaving the United States. In practice this is rarely done, but new IRC Sec 7345 may put a wrinkle i...

The IRS reminds taxpayers that they do not call taxpayers, do not demand immediate payment without allowing the taxpayer to question or appeal the amount owed, do not request a prepaid debit card or credit card and not over the telephone, and the IRS does not threaten to bring in local pol...

In a compassionate move realizing the extent of the devastation from Hurricane Irma and Harvey before it to taxpayers in FEMA designated areas, as has become customary the IRS grants an extension from October 16, 2017 to January 31,2018 those taxpayers filing personal tax returns, in addit...

In a compassionate move realizing the extent devastation from Hurricane Irma and Harvey before it to taxpayers in FEMA designated areas, the IRS has included in the definition of Hardship under IRC Sections 401(k) and 403(B) distributions to victims of hurricane Irma as followed hurricane ...

In a compassionate move realizing the extent devastation from Hurricane Irma to taxpayers in FEMA designated areas, FinCEN has extended the October 16, 2017 FBAR Form 114 deadline to January 31, 2018. Virgin Islands, Puerto Rico, and parts of Florida now eligible, extension filers have un...

The IRS has begun notifying taxpayers as expected under the PATH Act that ITINs that have not been used in at least once in the last 3 consecutive tax years and all ITINs with middle digits 70,71,72 and 80 will expire on December 31, 2017 and must be renewed. The Internal Revenue Service ...

WASHINGTON — The Internal Revenue Service today reminded U.S. citizens and resident aliens, including those with dual citizenship, to check if they have a U.S. tax liability and a filing requirement. At the same time, the agency advised anyone with a foreign bank or financial account tha...

April 18 was this year’s deadline for filing your federal tax return and paying any tax you might have owed . When taxpayers are due a refund, there is no penalty for filing a late tax return. However, If you owe tax, and failed to file and pay on time, chances are you will owe interest...