IRS interest rates remain unchanged for third quarter
The Internal Revenue Service has announced there will be no change in the interest rates for the calendar quarter beginning July 1, 2007.
The interest rates are as follows:
eight (8) percent for overpayments [seven (7) percent in the case of a corporation]
eight (8) percent for underpayments
ten (10) percent for large corporate underpayments
five and one-half (5.5) percent for the portion of a corporate overpayment exceeding $10,000.
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 one-half (0.5) of a percentage point.
The interest rates announced this week are computed from the federal short-term rate based on daily compounding determined during April 2007.
For more information, including a complete summary of interest rates from July 1975 to the present, see Revenue Ruling 2007-39.