Today, the Internal Revenue Service has announced that interest rates for the second half of 2014 are to be the same.
In essence, the interest rates for the calender quarter starting on 1sr April 2014 are now unchanged from before.
The rates released by the IRS are:
- 3 percent interest for over-payments (this is 2 percent interest in the case of corporations)
- 3 percent interest for under-payments
- 5 percent interest for corporate under-payments that are large
- 0,5 percent interest for corporate over-payments that exceed $10,000
The Internal Revenue Code states a quarterly determination of the interest rate.
For general tax payers who are not corporates, both the over and under payment interest rates are applicable on the basis of the federal short term rate plus 3 percentage points.
Similarly, in the case of corporations, the under-payment interest rate is the federal short term rate plus 3 percentage points, while it is the federal short term rate plus 2 percentage points for over-payment interest.
For large corporate under-payments, the IRS has determined the interest rate to be the federal short term rate plus 5 percentage points, while it is the federal short term rate plus 0,5 percentage points in the case of large corporate over-payments, namely those exceeding $10,000.
This same announcement is expected to appear shortly in the Revenue Ruling 2014-11 and the Internal Revenue Bulletin 2014-14, dated 31st March 2014.
Today’s interest rate announcement is computed on the basis of the short term federal rate that was determined in January 2014, to prevail from 1st February 2014. This is on the basis of a daily computation.