Although the Federal Reserves’ gradual interest rate increases may eventually impact the interest rates that the IRS uses to bill underpayments and pay on overpayments, they have not yet reached the baseline established with the Tax Code, when lower interest rates were not considered. As a result, the IRS has once again announced that the interest rates on overpayments and underpayments of tax for the calendar quarter beginning July 1, 2017, will remain unchanged. The rates will be:
- 4 percent for overpayments, other than corporations;
- 3 percent for overpayments by corporations (except 1.5 percent of the portion of a corporate overpayment exceeding $10,000);
- 4 percent for underpayments (except large corporations); and
- 6 percent for large corporate underpayments.