The IRS has announced that the interest rates for the calendar quarter beginning October 1, 2012, remain unchanged.
IRS Interest Rates Unchanged for 4th Quarter
The IRS has announced that the interest rates for the calendar quarter beginning October 1, 2012, will remain at 3 percent for overpayments (2 percent in the case of a corporation), 3 percent for underpayments, and 5 percent for large corporate underpayments. The interest rate for the portion of a corporate overpayment exceeding $10,000 remains at 0.5 percent. The interest rates are computed by using the federal short-term rate based on daily compounding determined during July 2012.
The Internal Revenue Code provides that the rate of interest is to be determined on a quarterly basis. For taxpayers other than corporations, the overpayment and underpayment rates are 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 tax period is the federal short-term rate plus one-half of a percentage point.
©2012 CCH. All Rights Reserved.