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News & Press: The Iowa State Bar Association News

IRS interest rates unchanged for second quarter

Thursday, March 9, 2017   (0 Comments)
Posted by: Zach Zuber
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The Internal Revenue Service announced that interest rates will remain the same for the calendar quarter beginning April 1. The rates will be: 4 percent for overpayments (3 percent in the case of a corporation), 1.5 percent for the portion of a corporate overpayment exceeding $10,000, 4 percent for underpayments and 6 percent 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. However, 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 0.5 of a percentage point.

Read more about how the IRS determines interest rates in Section 6621 of the Internal Revenue Code.

From the Iowa Lawyer Weekly



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