Interest Rates for the Fourth Quarter of 2024 Remain Unchanged

The IRS announced interest rates for the calendar quarter beginning October 1, 2024. (IR 2024-220, 8/21/2024)

For individuals, the rate for overpayments and underpayments will be 8% per year, compounded daily. Here is a complete list of the new rates:
 
  • 8% for overpayments (payments made in excess of the amount owed), 7% for corporations.
  • 5.5% for the portion of a corporate overpayment exceeding $10,000.
  • 8% for underpayments (taxes owed but not fully paid).
  • 10% for large corporate underpayments.

For taxpayers other than corporations, the overpayment and underpayment rates are the federal short-term rate plus three percentage points.

For corporations, the underpayment rate is generally the federal short-term rate plus three percentage points, while the overpayment rate is the federal short-term rate plus two percentage points.

The rate for large corporate underpayments is the federal short-term rate plus five percentage points. The rate on the portion of a corporate overpayment of tax exceeding $10,000 is the federal short-term rate plus one-half (0.5) of a percentage point.

Interest Rates for the Third Quarter of 2024 - May 14, 2024

The IRS announced that interest rates will remain the same for the calendar quarter beginning July 1, 2024. (IR 2024-138, 5/9/2024)

For individuals, the rate for overpayments and underpayments will be 8% per year, compounded daily. Here is a complete list of the new rates:
 
  • 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.
  • Under the Internal Revenue Code, the rate of interest is determined on a quarterly basis. The overpayment and underpayment rate is the federal short-term rate plus 3 percentage points.

As for a corporation, the underpayment rate is the federal short-term rate plus 3 percentage points and the overpayment rate is the federal short-term rate plus 2 percentage points. The rate for large corporate underpayments is the federal short-term rate plus 5 percentage points. The rate on the portion of a corporate overpayment of tax exceeding $10,000 for a taxable period is the federal short-term rate plus one-half (0.5) of a percentage point.

The interest rates announced are computed from the federal short-term rate determined during April 2024.

Revenue Ruling 2024-11 announcing the rates of interest will appear in Internal Revenue Bulletin 2024-24, dated June 10, 2024.