PHOENIX, Ariz. – The Internal Revenue Service recently announced that interest rates will remain the same for the calendar quarter beginning July 1.
As in the prior quarter, the rates will be:
- For overpayments (two percent in the case of a corporation) – 3 percent
- 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 three percentage points.
Generally, in the case of a corporation, the underpayment rate is the federal short-term rate plus three percentage points and the overpayment rate is the federal short-term rate plus two percentage points. The rate for large corporate underpayments is the federal short-term rate plus five 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 recently are computed from the federal short-term rate determined during April which took effect May 1 based on daily compounding.
Revenue Ruling 2013-10, announcing the rates of interest, will appear in Internal Revenue Bulletin 2013-26 on dated June 24.
Submitted by: Internal Revenue Service
Email: [email protected]
