Quickbooks, Bookkeeping and Accounting Blog

The IRS lowered interest rates on April 1st by 1%. They recently announced that they will drop interest by another 1% on July 1, 2008. The new interest rates will be:

• 5% for overpayments (4% for corporations)
• 5% for underpayments
• 7% for large corporate underpayments
• 2.5% for the portion of corporate overpayments that is above $10,000.

The IRS determines the interest rate on a quarterly basis based on the federal short-term rate.