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.
The rate for large corporate underpayments "is the federal short-term rate plus five percentage points," the IRS said.
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 Wednesday are computed from the federal short-term rate determined during January 2024.
Revenue Ruling 2024-6 announcing the rates of interest will appear in Internal Revenue Bulletin 2024-10, dated March 4.
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