IRS: Interest rates to remain same for 1st quarter of 2013

PHOENIX, Ariz. – The Internal Revenue Service recently announced that interest rates will remain the same for the calendar quarter beginning Jan. 1, 2013.

The rates are:

  • 3 percent for overpayments; two percent in the case of a corporation
  • 3 percent for underpayments
  • 5 percent for large corporate underpayments
  • 1/2 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 three percentage points.

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 1/2 of 1 percentage point.

These rates will appear in Internal Revenue Bulletin 2012-52, which will be released Dec. 27.

Submitted by: Internal Revenue Service

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IRS News Release | Image by Brett Barrett, St. George News

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