Interest Rates to Remain Unchanged for First Quarter of 2007

The Internal Revenue Service (IRS) has announced there will be no change in interest rates for the calendar quarter beginning January 1, 2007. The interest rates announced in http://www.irs.gov/pub/irs-drop/rr-06-63.pdf Revenue Procedure 2006-63 are:

  • 8 percent for overpayments, 7 percent in the case of a corporation
  • 8 percent for underpayments
  • 10 percent for large corporate underpayments
  • 5.5 percent for the portion of a corporate overpayment exceeding $10,000.

The rate of interest is determined on a quarterly basis under the Internal Revenue Code (IRC). 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 taxable period is the federal short-term rate plus 0.5 of a percentage point. The interest rates just announced are computed from the federal short-term rate, based on daily compounding determined during in October 2006.

You may like these other stories...

Did you know that the tax code allows you to claim tax deductions for household damage caused by thefts, vandalism, fires, floods, hurricanes, and others kinds of casualties? But the law imposes several restrictions.Relief...
Inversions: Loophole Is the ProblemJacob J. Lew, the U.S. Treasury Secretary, published an opinion piece in the Wall Street Journal that "the system has become full of inefficiencies and special-interest loopholes. That...
School tax breaks get House support as Democrats objectRichard Rubin of Bloomberg reported that the House of Representatives on Thursday voted to expand and simplify tax breaks for education as Republicans continue to pass...

Upcoming CPE Webinars

Jul 31
In this session Excel expert David Ringstrom helps beginners get up to speed in Microsoft Excel. However, even experienced Excel users will learn some new tricks, particularly when David discusses under-utilized aspects of Excel.
Aug 5
This webcast will focus on accounting and disclosure policies for various types of consolidations and business combinations.
Aug 20
In this session we'll review best practices for how to generate interest in your firm’s services.
Aug 21
Meet budgets and client expectations using project management skills geared toward the unique challenges faced by CPAs. Kristen Rampe will share how knowing the keys to structuring and executing a successful project can make the difference between success and repeated failures.