IRS Sets Fourth Quarter 2008 Interest Rates

Posted by Dave Dunn on October 1, 2008 | 0 Comments

Tags: Accounting, Bookkeeping

After lowering interest rates by 1% each the last two quarters, the IRS announced today that they are raising interest rates by 1% effective October 1, 2008. Therefore, beginning today the interest rates will be:

• 6% for overpayments (5% for corporations)
• 6% for underpayments
• 8% for large corporate underpayments
• 3.5% for the portion of corporate overpayments that is above $10,000.

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