1. news
  2. TAX

IRS Lowers Interest Rates on Over- and Underpayments

Please note: This item is from our archives and was published in 2009. It is provided for historical reference. The content may be out of date and links may no longer function.

Related

TOPICS

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)).

 

Advertisement