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.