IRS News:
The Internal Revenue Service recently announced that interest rates will remain the same for the calendar quarter beginning April 1.
The rates are:
- 3 percent for overpayments or 2 percent in the case of a corporation;
- 0.5percent 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 are computed from the federal short-term rate determined in January.