Interest Rates Hold Steady for Q1 2024

The IRS has announced that over/under payment interest rates will remain the same for the calendar quarter beginning January 1, 2024. (IR 2023-219, 11/17/2023; Rev Rul 2023-22, 2023-49 IRB)

The interest rates for the first quarter of 2024 are:

  • 8% for overpayments (payments made in excess of the amount owed), 7% for corporations.
  • 5% for the portion of a corporate overpayment exceeding $10,000.
  • 8% for underpayments (taxes owed but not fully paid).
  • 10% for large corporate underpayments.

These interest rates are computed from the federal short-term rate determined during October 2023.