http://www.irs.gov/newsroom/article/0,,id=183496,00.html
IR-2008-76, June 2, 2008
Washington — The Internal Revenue Service today announced that interest rates for the calendar quarter beginning July 1, 2008, will drop by one percentage point. The new rates will be:
* five (5) percent for overpayments [four (4) percent in the case of a corporation];
* five (5) percent for underpayments;
* seven (7) percent for large corporate underpayments; and
* two and one-half (2.5) 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 based on daily compounding determined during April 2008.
Revenue Ruling 2008-27, announcing the new rates of interest, will appear in Internal Revenue Bulletin No. 2008-26, dated June 30, 2008.
Interest rates for the 2nd quarter of 2008 were:
• 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.
Interest rates for the 1st quarter of 2008 were:
* seven (7) percent for overpayments [six (6) percent in the case of a corporation];
* seven (7) percent for underpayments;
* nine (9) percent for large corporate underpayments; and
* four and one-half (4.5) percent for the portion of a corporate overpayment exceeding $10,000.
For more historical interest rates, see
http://www.irs.gov/pub/irs-pdf/n433.pdf
or
http://www.taxalmanac.org/index.php/Federal_Underpayment_Interest_Rates?SC=LAC002I.
