The Internal Revenue Service announced that its interest rates will remain the same for the calendar quarter beginning Jan. 1, 2018.
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 October 2017 to take effect Nov. 1 based on daily compounding.
Revenue Ruling 2017-25, announcing the rates of interest, will appear in Internal Revenue Bulletin 2017-52, dated Dec. 26.
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