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)).

 

Where to find November’s flipbook issue

The Journal of Accountancy is now completely digital. 

 

 

 

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