IRS Lowers Interest Rates on Over- and Underpayments


The IRS announced that interest rates on tax overpayments and underpayments will drop by one percentage point for the quarter starting April 1 (Rev. Rul. 2009-7).

 

IRC § 6621 establishes the interest rates on tax overpayments and underpayments. The rates are based on the federal short-term rate (most recently published in Rev. Rul. 2009-5).

 

Starting April 1, the new interest rates on overpayments will be:

  • 3% for corporate overpayments (1.5% for the portion of a corporate overpayment exceeding $10,000);
  • 4% for other overpayments (section 6621(a)(1)).


The new interest rates on underpayments will be:

  • 6% for large (over $100,000) corporate underpayments (section 6621(c));
  • 4% for other underpayments (section 6621(a)(2)).

 

SPONSORED REPORT

How the election may affect taxation of business income

This report summarizes recent proposals to reform the U.S. business income tax system and considers the path to enactment of any such legislation.

VIDEO

How to Excel pivot a general ledger

The general ledger is a vast historical data archive of your company's financial activities, including revenue, expenses, adjustments, and account balances. J. Carlton Collins, CPA, shows how to prepare data for, and mine data with, PivotTables.

QUIZ

Did you follow 2016’s biggest accounting news?

CPAs will remember 2016 as a year of new standards and new faces. How well did you follow the biggest accounting events? The 7 questions in this quiz will help you find out