Interest rates remain unchanged for the calendar quarter beginning Oct. 1, the Internal Revenue Service reported.
The rates will be:
- 4 percent for overpayments (3 percent in the case of a corporation);
- 1.5 percent for the portion of a corporate overpayment exceeding $10,000;
- 4 percent for underpayments; and,
- 6 percent for large corporate underpayments.
The rate of interest is determined quarterly. For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus three percentage points.
For corporations, the underpayment rate is generally the federal short-term rate plus three percentage points and the overpayment rate is the federal short-term rate plus two percentage points.
The rate for large corporate underpayments is the federal short-term rate plus five 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 (0.5) of a percentage point.
