IRS: Interest Rates Will Remain Unchanged for Fourth Quarter of 2015

IRS: Interest Rates Will Remain Unchanged for Fourth Quarter of 2015
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September 10, 2015

The Internal Revenue Service (IRS) has announced that its interest rates will remain the same for the fourth calendar quarter of 2015, beginning October 1.

The rates will be as follows:

  • Three (3) percent for overpayments [two (2) percent in the case of a corporation];
  • One-half (0.5) percent for the portion of a corporate overpayment exceeding $10,000;
  • Three (3) percent for underpayments; and
  • Five (5) 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 interest 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 one-half (0.5) of a percentage point.

Find more tax-related tips and information at IRS.gov.