Taxable Talk

The IRS announced today that IRS interest rates will decrease for the third quarter of 2020 to 3% for most from 5%:

• three (3) percent for overpayments [two (2) percent in the case of a corporation];
• one-half (0.5) percent for the portion of a corporate overpayment exceeding $10,000;
• three (3) percent for underpayments; and
• five (5) percent for large corporate underpayments.

The IRS press release is here; the official Revenue Ruling is here.

The IRS announced yesterday that IRS interest rates will be unchanged for the third quarter of 2018:

The rates will be:

– 5 percent for overpayments, 4 percent in the case of a corporation;
– 2.5 percent for the portion of a corporate overpayment exceeding $10,000;
– 5 percent for underpayments; and
– 7 percent for large corporate underpayments.

As I tell clients interest works both ways: If you file after the April tax deadline, you owe interest to the IRS; if you file after the April tax deadline and receive a refund, you are paid interest. That interest is, of course, taxable.

The IRS today announced the interest rates for the second quarter of 2018.

The interest rates will be 5 percent for overpayments (4 percent in the case of a corporation), 2.5 percent for the portion of a corporate overpayment exceeding $10,000, 5 percent for underpayments, and 7 percent for large corporate underpayments.

The interest rate had been 4 percent for overpayments.

The IRS announced that interest rates for the first quarter of 2018 remain unchanged:

The rates will be:

• four (4) percent for overpayments [three (3) percent in the case of a corporation];
• 1 and one-half (1.5) percent for the portion of a corporate overpayment exceeding $10,000;
• four (4) percent for underpayments; and
• six (6) percent for large corporate underpayments.

The IRS notice is published in Revenue Ruling 2017-25.

The IRS announced today that third quarter interest rates will remain unchanged:

The Internal Revenue Service today announced that interest rates will remain the same for the calendar quarter beginning July 1, 2017. The rates will be:
• four (4) percent for overpayments (three (3) percent in the case of a corporation);
• 1 and one-half (1.5) percent for the portion of a corporate overpayment exceeding $10,000;
• four (4) percent for underpayments; and
• six (6) percent for large corporate underpayments.

The IRS announced today that interest rates for the first quarter of 2014 will be unchanged:

– 3% for overpayments (2% for corporations);
– 3% for underpayments;
– 5% for large corporate underpayments; and
– 0.5% for the portion of corporate overpayments exceeding $10,000.

Full details are given in Revenue Ruling 2013-25.

The IRS announced today that interest rates for the fourth quarter (beginning October 1, 2013) will be unchanged:

• 3% for overpayments (2% for corporate overpayments);
• 3% for underpayments;
• 5% for large corporate underpayments; and
• 0.5% for corporate overpayments exceeding $10,000.

The announcement is Revenue Ruling 2013-16 and will be in Internal Revenue Bulletin 2013-40.