IR-2007-193, Nov. 28, 2007
WASHINGON – The Internal Revenue Service today announced that interest rates
for the calendar quarter beginning January 1, 2008, will drop by one
percentage point. The new rates will be: 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.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 October 2007.
Historic IRS
Interest Rates
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