PHOENIX — The Internal Revenue Service announced Friday that interest rates will remain the same for the calendar quarter beginning Oct. 1.
The rates will be:
- three percent for overpayments (two percent in the case of a corporation)
- one-half percent for the portion of a corporate overpayment exceeding $10,000
- three percent for underpayments
- five percent for large corporate underpayments
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 one-half of a percentage point.
The interest rates announced Friday are computed from the federal short-term rate determined July 1, to take effect Aug. 1, based on daily compounding.
Revenue Ruling 2015-17 announcing the rates of interest will appear in Internal Revenue Bulletin 2015-39, dated Sept. 28.
Submitted by the Internal Revenue Service.
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