IRS Announces Drop in Interest Rates

Blogger
Share this content
0


The following article is provided courtesy of CCH, Inc.

The IRS has announced that interest rates for the calendar quarter beginning April 1, 2001, will drop one percentage point to 8% for overpayments (7% in the case of a corporation), 8% for underpayments and 10% for large corporate underpayments. The overpayment rate for the portion of a corporate overpayment exceeding $10,000 will be 5.5%. The interest rates are computed from the federal short-term rate based on daily compounding determined during January 2001.

The Internal Revenue Code provides that 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.

Replies

Please login or register to join the discussion.

There are currently no replies, be the first to post a reply.