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Interest rates remain the same for the second quarter of 2024

Posted on March 12, 2024

The IRS has announced that interest rates will remain the same for the calendar quarter beginning April 1, 2024.

Interest rates are computed from the federal short-term rate determined during January 2024. Under the Internal Revenue Code, the rate of interest is determined on a quarterly basis. For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus three percentage points.

For individuals, the rate for overpayments and underpayments will be 8% per year, compounded daily.

Here’s a complete list of this quarter’s rates:

  • 8% for overpayments (payments made in excess of the amount owed), 7% for corporations.
  • 5.5% for the portion of a corporate overpayment exceeding $10,000.
  • 8% for underpayments (taxes owed but not fully paid).
  • 10% for large corporate underpayments.

For businesses:

Generally, in the case of a corporation, the underpayment rate is the federal short-term rate plus three percentage points and the overpayment rate is the federal short-term rate plus two percentage points.

  • The rate for large corporate underpayments is the federal short-term rate plus five percentage points.
  • The rate on the portion of a corporate overpayment of tax exceeding $10,000 for a taxable period is the federal short-term rate plus one-half (0.5) of a percentage point.

See the revenue ruling for details by going to: Revenue Ruling 2024-6. If you have a business or personal concern related to interest rates, we’d like to help you sort through the relevant details. Feel free to contact our experienced CPAs.