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Interest rates unchanged for fourth quarter
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WASHINGTON, Aug. 17, 2009 — The Internal Revenue Service has announced that interest rates for the calendar quarter beginning Oct. 1, 2009, will remain the same.
The rates will be:
- 4 percent for overpayments (3 percent in the case of a corporation);
- 4 percent for underpayments;
- 6 percent for large corporate underpayments; and
- 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 are computed from the federal short-term rate during July 2009 to take effect Aug. 1, 2009, based on daily compounding.
Revenue Ruling 2009-27, announcing the rates of interest, will appear in Internal Revenue Bulletin 2009-39, dated Sept. 28, 2009.
