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February 21, 2024 at 04:41 PM
The Internal Revenue Service said Wednesday that interest rates will remain the same for the calendar quarter beginning April 1.
For individuals, the rate for overpayments and underpayments will be 8% per year, compounded daily.
Other new rates are:
- 8% for overpayments (payments made in excess of the amount owed), 7% for corporations;
- 5.5% for the portion of a corporate overpayment exceeding $10,000;
- 8% for underpayments (taxes owed but not fully paid); and
- 10% for large corporate underpayments.
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,” the IRS explained.
Generally, according to the IRS, 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.
