CATEGORIES

Categorized | Breaking News

IRS maintains interest rates remain for the 3rd Quarter

The Internal Revenue Service has announced that interest rates for the calendar quarter beginning July 1, 2011, will remain the same as in the previous quarter.  The rates will be:

  • 4% for overpayments [3% in the case of a corporation];
  • 4% percent for underpayments;
  • 6% for large corporate underpayments; and
  • 1.5% for the portion of a corporate overpayment exceeding $10,000.

Under the Internal Revenue Code, the rate of interest is determined on a quarterly basis.  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 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 one-half (0.5) of a percentage point.

The announced interest rates are computed from the federal short-term rate during April 2011 to take effect May 1, 2011, based on daily compounding.

.


Leave a Reply