PHOENIX ― The Internal Revenue Service announced Thursday that interest rates will remain the same for the calendar quarter beginning July 1.
The rates will be:
3 percent for overpayments and 2 percent in the case of a corporation;
0.5 percent for the portion of a corporate overpayment exceeding $10,000;
3 percent for underpayments; and
5 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 0.5 of a percentage point.
The interest rates announced Thursday are computed from the federal short-term rate determined during April 2015 to take effect May 1, 2015, based on daily compounding.
Revenue Ruling 2015-12 (http://www.irs.gov/pub/irs-) announcing the rates of interest will appear in Internal Revenue Bulletin 2015-26, dated June 29, 2015.