IRS Drops Interest Rates

Effective January 1, 2003, the Internal Revenue Service will drop interest rates by one percentage point. The following new rates will apply:

  • 5% interest on tax overpayments
  • 5% interest on tax underpayments
  • 7% interest on tax underpayments by large corporations
  • 2 1/2% interest on the portion of a corporate overpayment exceeding $10,000

These rates will apply for the first quarter of 2003. These are the lowest rates since 1975.

The interest rates are computed from the federal short-term rate based on daily compounding determined during October 2002.

A complete summary of the new rates is described in IRS Revenue Ruling 2002-70.

You may like these other stories...

Boehner addresses GOP priorities ahead of midterm electionsHouse Speaker John Boehner (R-OH) on Thursday delivered what amounted to closing arguments ahead of the November elections, laying out a list of Republican...
As anyone who's ever been through a divorce can attest, the pain of parting with your spouse isn't just emotional—the fallout from divorce can wreak financial havoc as well long after the dust in the courtroom...
Former DOJ Tax Division head Kathryn Keneally joining DLA Piper in New YorkGlobal law firm DLA Piper announced on Thursday that Kathryn Keneally, the former head of the US Justice Department Tax Division, is joining the firm...

Already a member? log in here.

Upcoming CPE Webinars

Sep 24
In this jam-packed presentation Excel expert David Ringstrom, CPA will give you a crash-course in creating spreadsheet-based dashboards. A dashboard condenses large amounts of data into a compact space, yet enables the end user to easily drill down into details when warranted.
Sep 30
This webcast will include discussions of important issues in SSARS No. 19 and the current status of proposed changes by the Accounting and Review Services Committee in these statements.
Oct 21
Kristen Rampe will share how to speak and write more effectively by understanding your own and your audience's communication style.
Oct 23
Amber Setter will show the value of leadership assessments as tools for individual and organizational leadership development initiatives.