IRS interest rates remain same for Q3 of 2017
June 9, 2017
PHOENIX — The Internal Revenue Service today announced that interest rates will remain the same for the calendar quarter beginning July 1, 2017. The rates will be:
• 4 percent for overpayments (three (3) percent in the case of a corporation);
• 1.5 percent for the portion of a corporate overpayment exceeding $10,000;
• 4 percent for underpayments; and
• 6 percent for large corporate underpayments.
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 0.5 of a percentage point.
The interest rates announced today are computed from the federal short-term rate determined during April 2017 to take effect May 1, 2017, based on daily compounding.
Revenue Ruling 2017-13, announcing the rates of interest will appear in Internal Revenue Bulletin 2017-26, dated June 26, 2017.