The IRS has announced that the interest rates on overdue taxes has been been further reduced.

1. For individuals:
For individuals who owe back taxes the interest rate has been reduced to 5%.

For individuals who are entitled a refund, the interest rate paid will also be 5%.

2. For Corporations:
For Corporations that owe more than $100,000 in back taxes the interest rate remains fairly high at 7%.

For Corporations that are entitled to a tax refund, the interest rate paid will be only 4%, provided the refund is less than $10,000. The interest rate drops to 2.5% for corporation refunds in excess of $10,000.

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