Accounting News

Friday, August 19, 2011
IRS Lowers Interest Rate

The Internal Revenue Service has announced that it is lowering the interest rates for the fourth quarter of 2011 (October through December). The interest rate for over-payments will be two percent for individuals and three percent for corporations. The interest rate for under-payments is now three percent for individual and five percent for corporations. The rate for over-payments exceeding $10,000 has dropped to half a percent.

The new rates represent a one point drop from their current levels. The IRS uses the federal short-term rate to determine its rates. If you have any questions about how this will affect your situation you should contact your tax preparer.