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IRS Announces Interest Rates Unchanged for Calendar Quarter Beginning April 1, 2015
The IRS has announced that the interest rates for the calendar quarter beginning April 1, 2015, will remain at 3 percent for overpayments (2 percent in the case of a corporation), 3 percent for underpayments and 5 percent for large corporate underpayments. The interest rate for the portion of a corporate overpayment exceeding $10,000 remains at 0.5 percent. The interest rates are computed by using the federal short-term rate based on daily compounding determined during January 2015.
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The Internal Revenue Code provides that the rate of interest is to be 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. Generally, 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 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 of a percentage point.