Over- And Underpayment Interest Rates Remain Same For Fourth Quarter 2014

The IRS has announced that the interest rates on overpayments and underpayments of tax for the calendar quarter beginning October 1, 2014 will remain unchanged.*

The rates will be:

  • 3 percent for overpayments, in cases other than corporations;
  • 2 percent for overpayments in the case of a corporation (except 0.5 percent for the portion of a corporate overpayment exceeding $10,000); and
  • 3 percent for underpayments (except 5 percent for large corporate underpayments).

The Tax Code provides that the rate of interest on over- and underpayments of tax is to be determined on a quarterly basis. The interest rates for the fourth quarter 2014 are computed by using the federal short-term rate based on daily compounding determined during July 2014.

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