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