News

The Internal Revenue Service today announced that interest rates will remain the same for the calendar quarter beginning January 1, 2020. The rates will be: 

• 5% for overpayments (4% in the case of a corporation);
• 2.5% for the portion of a corporate overpayment exceeding $10,000;
• 5% for underpayments; and
• 7% 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 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.