PHOENIX – The Internal Revenue Service announced that interest rates will remain the same for the calendar quarter beginning Jan. 1, 2014. The rates will be:
- For overpayments, 3 percent (2 percent in the case of a corporation)
- For underpayments, 3 percent
- For large corporate underpayments, 5 percent
- For the portion of a corporate overpayment exceeding $10,000, 0.5 percent
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 0.5 of a percentage point.
The interest rates announced today are computed from the federal short-term rate determined during Oct. 2013 to take effect Nov. 1, 2013, based on daily compounding.
Revenue Ruling 2013-25 announcing the rates of interest will appear in Internal Revenue Bulletin 2013-52, dated Dec. 23, 2013.
Submitted by the IRS
Email: [email protected]
Twitter: @STGnews
Copyright St. George News, SaintGeorgeUtah.com LLC, 2013, all rights reserved.