IRS reduces Interest Rate on underpayment by 1% for 1st Quarter 2008!
Beginning January 1, 2008, IRS has announced Interest rates will drop by one percentage point for Individual Tax returns. The new rates will be:
For Individual Tax Returns:
*7% for overpayments
*7% for underpayments;
For Corporation Tax Returns:
*4.5% for overpayments
*9.0% for large corporate underpayments;
*4.5% for the portion of a corporate overpayment exceeding $10,000.