Interest Rates Remain the Same for the First Quarter

The Internal Revenue Service today announced that interest rates will remain the same for the calendar quarter beginning January 1, 2017.  The rates will be:

four (4) percent for overpayments [three (3) percent in the case of a corporation];
1 and one-half (1.5) percent for the portion of a corporate overpayment exceeding $10,000;
four (4) percent for underpayments; and
six (6) 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 3 percentage points.

Courtesy of IRS

For more information contact Neikirk, Mahoney and Smith at 502-896-2999

Interest Rates Remain the Same for the Fourth Quarter of 2016

The Internal Revenue Service announced that interest rates will remain the same for the calendar quarter beginning Oct. 1, 2016.  The rates will be:

four (4) percent for overpayments (three (3) percent in the case of a corporation);
1 and one-half (1.5) percent for the portion of a corporate overpayment exceeding $10,000;
four (4) percent for underpayments; and
six (6) 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 3 percentage points.

Courtesy of IRS

For more information contact Neikirk, Mahoney and Smith at 502-896-2999

Interest Rates Remain the Same for the Third Quarter of 2016

The Internal Revenue Service today announced that interest rates will remain the same for the calendar quarter beginning July 1, 2016. The rates will be:
four (4) percent for overpayments [three (3) percent in the case of a corporation];
four (4) percent for underpayments;
six (6) percent for large corporate underpayments; and
1 and one-half (1.5) 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 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.
The interest rates announced today are computed from the federal short-term rate determined during April 2016 to take effect May 1, 2016, based on daily compounding.

Courtesy of IRS

For more information contact Neikirk, Mahoney and Smith at 502-896-2999