IRS Announces Fourth Quarter Interest Rates

IRS News:
 
PHOENIX  The Internal Revenue Service recently announced that interest rates will remain the same for the calendar quarter beginning Oct. 1, 2016. 
 
The rates will be:
  • 4 percent for overpayments (three (3) percent in the case of a corporation);
  • 1.5 percent for the portion of a corporate overpayment exceeding $10,000;
  • 4 percent for underpayments; and
  • 6 percent for large corporate underpayments.
Under the Internal Revenue Code, the rate of interest is determined on a quarterly basis. For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus 3 percentage points.
 
Generally, in the case of a corporation, the underpayment rate is the federal short-term rate plus 3 percentage points and the overpayment rate is the federal short-term rate plus 2 percentage points. The rate for large corporate underpayments is the federal short-term rate plus 5 percentage points. The rate on the portion of a corporate overpayment of tax exceeding $10,000 for a taxable period is the federal short-term rate plus one-half (0.5) of a percentage point.
 
The interest rates recently announced are computed from the federal short-term rate determined during July 2016 to take effect Aug. 1, 2016, based on daily compounding. Revenue Ruling 2016-23, announcing the rates of interest will appear in Internal Revenue Bulletin 2016-39, dated Sept. 26, 2016.
Search
LOS ALAMOS

ladailypost.com website support locally by OviNuppi Systems