IRS interest rates for first quarter of 2017

PHOENIX — The Internal Revenue Service announced that interest rates will remain the same for the calendar quarter beginning Jan. 1, 2017.

Those rates are as follows:

  • For overpayments, 4 percent; or 3 percent in the case of a corporation.
  • For the portion of a corporate overpayment exceeding $10,000, 1.5 percent.
  • For underpayments, 4 percent.
  • For large corporate underpayments, 6 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 half a percentage point.

The interest rates announced are computed from the federal short-term rate determined during October 2016 to take effect Nov. 1, 2016, based on daily compounding.

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