IRS Announces Interest Rates for Q2
The Internal Revenue Service said Wednesday that interest rates will remain the same for the calendar quarter beginning April 1.
For individuals, the rate for overpayments and underpayments will be 8% per year, compounded daily.
Other new rates are:
8% for overpayments (payments made in excess of the amount owed), 7% for corporations;
5.5% for the portion of a corporate overpayment exceeding $10,000;
8% for underpayments (taxes owed but not fully paid); and
10% 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 three percentage points,” the IRS explained.
Generally, according to the IRS, 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.
