IRS News:
The Internal Revenue Service (IRS) has announced that interest rates will remain the same for the calendar quarter beginning Oct. 1.
The rates will be:
- 3 percent for overpayments [two percent in the case of a corporation];
- 3 percent for underpayments;
- 5 percent for large corporate underpayments; and
- 1/2 percent for the portion of a corporate overpayment exceeding $10,000.
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 three percentage points.
Generally, in the case of a corporation, the underpayment rate is the federal short-term rate plus three percentage points and the overpayment rate is the federal short-term rate plus two percentage points.The rate for large corporate underpayments is the federal short-term rate plus five 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 of a percentage point.
The interest rates recently announced are computed from the federal short-term rate determined during July 2013 to take effect Aug. 1, 2013, based on daily compounding.