The Internal Revenue Service made an announcement regarding the continuity of interest rates for the upcoming quarter starting July 1, 2024. 🗓️
For individuals, both overpayments and underpayments will maintain an annual rate of 8%, compounded daily. Here’s a breakdown of the updated rates:
• Overpayments: 8% (for payments exceeding the owed amount), while corporations will have a rate of 7%.
• For corporate overpayments surpassing $10,000, the rate will be 5%.
• Underpayments will remain at 8%, with large corporate underpayments set at 10%.
According to the Internal Revenue Code, interest rates are reviewed quarterly. For taxpayers other than corporations, overpayment and underpayment rates consist of the federal short-term rate plus 3 percentage points.
Corporations generally have an underpayment rate of the federal short-term rate plus 3 percentage points and an overpayment rate of the federal short-term rate plus 2 percentage points. The rate for large corporate underpayments is the federal short-term rate plus 5 percentage points.
For corporate overpayments exceeding $10,000, the rate is the federal short-term rate plus 0.5 percentage points.
These interest rates are based on the federal short-term rate determined in April 2024. For further details, refer to the revenue ruling. 🏦
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