The IRS announced that interest rates on overpayments and underpayments will stay the same for Fourth Quarter 2015. Here are the details:
- 3% for overpayments (2% percent in the case of a corporation)
- 0.5% percent for the portion of a corporate overpayment exceeding $10,000
- 3% for underpayments
- 5% for large corporate underpayments
The rates are calculated on the federal short-term rate determined on July 1 2015, and based on daily compounding. For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus 3 percentage points.
For corporations, typically 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. Large corporate underpayments, however, are calculated as the federal short-term rate plus 5 percentage points. And 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 of a percentage point.