Interest Rates Remain the Same for the First Quarter of 2015

09-Jan-2015

The Internal Revenue Service has announced that interest rates will remain the same for the calendar quarter beginning Jan. 1, 2015.  The rates will be: 

  • three (3) percent for overpayments (two (2) percent in the case of a corporation);

  • three (3) percent for underpayments;

  • five (5) percent for large corporate underpayments; and

  • one-half (0.5) percent for the portion of a corporate overpayment exceeding $10,000.

    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.

    The interest rates announced are computed from the federal short-term rate determined during October 2014 to take effect Nov. 1, 2014, based on daily compounding.


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