No Change to Interest Rates for 2nd Quarter 2016

Interest rate

The IRS announced Monday that interest rates will remain the same for the calendar quarter beginning April 1, 2016. The rates will be:

  • three (3) percent for overpayments, [two (2) percent in the case of a corporation};
  • one-half (0.5) percent for the portion of a corporate overpayment exceeding $10,000;
  • three (3) percent for underpayments; and
  • five (5) percent for large corporate underpayments.

Under the IRS 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 Monday are computed from the federal short-term rate determined during January 2016 to take effect Feb. 1, 2016, based on daily compounding.

Source: IRS.gov

Account On Us specializes in small business, large business and individual accounting needs. Call us today 407.892.1266 or visit us online at Account On Us.

Author:

Share This Post On

Submit a Comment

Your email address will not be published. Required fields are marked *