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WASHINGTON ( IR-2008-30, March 3, 2008) — The Internal Revenue Service today announced that interest rates for the calendar quarter beginning April 1, 2008, will drop by one percentage point. The new rates will be:
- six (6%) percent for overpayments [five (5) percent in the case of a corporation];
- six (6%) percent for underpayments;
- eight (8%) percent for large corporate underpayments; and
- three and one-half (3.5%) 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 in Revenue Ruling 2008-10 are computed from the federal short-term rate based on daily compounding determined during January 2008. |
