Interest rates unchanged for Q4

Sign in front of IRS building in Washington, D.C.
The IRS building in Washington, D.C.

The Internal Revenue Service announced that its interest rates will remain the same for the calendar quarter beginning Oct. 1.

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 three percentage points.

Generally, in the case of a corporation, the underpayment rate is 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 0.5 of a percentage point.

The interest rates are computed from the federal short-term rate determined during July 2017 to take effect Aug. 1 based on daily compounding.

Revenue Ruling 2017-18, announcing the rates of interest, will appear in Internal Revenue Bulletin 2017-39, dated Sept. 25.

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