The Internal Revenue Service (IRS) has announced what its various interest rates will be for the third quarter of 2024, including the rate applied for underpayment of taxes.
The Internal Revenue Code requires the IRS to calculate the interest rate for overpayment and underpayment of taxes each quarter and make it public. The interest rates are based on the federal short-term rate determined in January 2024, in accordance with the latest revenue ruling.
Accordingly, the IRS said in a May 9 notice that, for the calendar quarter beginning on July 1, 2024, the interest rates will be as follows:
For individual taxpayers, the rate for overpayments and underpayments will be 8 percent per year, compounded daily.
For corporations, the rate for overpayments will be 7 percent, dropping to 5.5 percent for the portion of a corporate overpayment exceeding $10,000.
Large corporate underpayments will carry an interest rate of 10 percent.
In general, the overpayment and underpayment rate for taxpayers other than corporations is the federal short-term rate plus three percentage points….
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