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IRS: No Change in Interest Rates for Q3 of 2015

Jun 8th 2015
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Interest rates will remain the same for the calendar quarter beginning on July 1, the IRS announced last week.

According to Revenue Ruling 2015-12, the rates for the third quarter of this year will be:

  • Three percent for overpayments (2 percent for corporations).
  • One-half percent for the portion of a corporate overpayment exceeding $10,000.
  • Three percent for underpayments.
  • Five percent for large corporate underpayments.

Under the Internal Revenue Code, interest rates are 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, according to the IRS. 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 of a percentage point.

The interest rates announced by the IRS on June 4 are computed from the federal short-term rate determined during April 2015 to take effect May 1, based on daily compounding.

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