Internal Revenue Service interest rates will hold at the same level for the calendar quarter beginning July 1.
The IRS said 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.
For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus 3 percentage points.
Generally, in the case of a corporation, the underpayment rate is the federal short-term rate plus 3 percentage points and the overpayment rate is the federal short-term rate plus 2 percentage points.
The rate for large corporate underpayments is the federal short-term rate plus 5 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 0.5 of a percentage point.
The interest rates are computed from the federal short-term rate determined during April 2017 to take effect May 1, 2017, based on daily compounding.
Revenue Ruling 2017-13, announcing the rates, will appear in Internal Revenue Bulletin 2017-26, dated June 26.
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