WASHINGTON — The Internal Revenue Service today announced that interest rates will increase for the calendar quarter beginning Oct.1, 2023.
For individuals, the rate for overpayments and underpayments will be 8% per year, compounded daily. Here is a complete list of the new 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.
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 3 percentage points.
Generally, in the case of a corporation, the underpayment rate is the federal short-term rate plus 3 percentage points and the overpayment rate is 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. 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.
The interest rates announced today are computed from the federal short-term rate determined during July 2023. See the revenue ruling for details.
Revenue Ruling 2023-17PDF announcing the rates of interest,will appear in Internal Revenue Bulletin 2023-37, dated Sep. 11, 2023.
https://wxccorporation.com/wp-content/uploads/2022/05/May22-2.jpg398714admin-wxchttp://wxccorporation.com/wp-content/uploads/2017/06/logo1.jpgadmin-wxc2023-08-31 03:03:102023-08-31 03:03:10Interest rates increase for the fourth quarter 2023
A reliable accounting and bookkeeping firm that makes a difference by delivering great customer service, because we are partners in your growth.
WXC Doral Offices
8240 NW 52nd Terrace