Global Daily Tax News, US IRS To Keep Interest Rates Unchanged, (Nov 21, 2023)

The Internal Revenue Service has announced that interest rates will remain the same for the calendar quarter beginning January 1, 2024.

For individuals, the rate for overpayments and underpayments will be eight percent per year, compounded daily.

The rates are as follows:

• Eight percent for overpayments (payments made in excess of the amount owed);

• Seven percent for corporations, and 5.5 percent for the portion of a corporate overpayment exceeding USD10,000;

• Eight percent for underpayments (taxes owed but not fully paid); and

• Ten 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 three percentage points.