IRS interest rates for late payment underpayments loans 2008 2009 calculator
IRS (internal revenue service) charges interest rates to everyone who doesn’t meet the IRS deadline for filing taxes.
IRS charges interest on underpayments and late payments or even on family loans.
Internal Revenue Service announced that interest rates for the calendar quarter beginning October 1, 2009, will remain the same. The rates will be:
four (4%) percent for overpayments [three (3) percent in the case of a corporation];
• four (4%) percent for underpayments;
• six (6%) percent for large corporate underpayments; and
• one and one-half (1.5%) percent for the portion of a corporate overpayment exceeding $10,000.
The IRS rate of interest is determined every quarter 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.
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.
