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)).

 

VIDEO

Excel walk-through: Sparklines

Want to liven up your spreadsheets with some color and graphical elements? Kelly L. Williams, CPA, Ph.D., shows how to use Excel sparklines, which illustrate data trends and patterns via small charts that fit in a single Excel cell.

PODCAST

What’s next for potential CPA licensure changes

A new model proposed by NASBA and the AICPA is designed with an eye on the future for newly licensed CPAs. The AICPA's Carl Mayes, CPA, provides background on the project and a look ahead to 2020.