IRS Interest Rates Will Remain The Same

by Aaron Scott Young

IRS Interest Rate Announcement

IRS Announced That Interest Rates Will Remain The Same

WASHINGTON – The Internal Revenue Service today announced that interest rates will remain the same for the calendar quarter beginning Jan. 1, 2015. The rates will be:

  • Three (3) percent for overpayments (two (2) percent in the case of a corporation).
  • Three (3) percent for underpayments.
  • Five (5) percent for large corporate underpayments.
  • One-half (0.5) percent 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 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 one-half (0.5) of a percentage point.
The interest rates announced today are computed from the federal short-term rate determined during October 2014 to take effect Nov. 1, 2014, based on daily compounding.

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