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IRS: No Interest Rate Change in Third Quarter

The Internal Revenue Service says interest rates will remain the same for the calendar quarter that starts July 1. That means the rates will be:

  • 4 percent for overpayments (3 percent in the case of a corporation);
  • 4 percent for underpayments;
  • 6 percent for large corporate underpayments; and
  • 5 percent for the portion of a corporate overpayment that exceeds $10,000.

For taxpayers – other than corporations – the overpayment and underpayment rate is the federal short-term rate plus 3 percentage points.

For corporations, the underpayment rate is generally the federal short-term rate plus 3 percentage points, while the overpayment rate is the federal rate plus 2 percentage points. In the case of large corporations, the underpayment rate is the federal short-term rate plus 5 percentage points. The overpayment rate is figured on the part of a corporate overpayment exceeding $10,000 for the taxable period, and the federal rate plus half a percentage point.

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