IRS Announces Overpayment and Underpayment Interest Rates for Quarter Beginning October 1, 2017 (IR-2017-147; Rev. Rul. 2017-18)

The IRS has announced that the interest rates for the calendar quarter beginning October 1, 2017, will be 4 percent for overpayments (3 percent in the case of a corporation), 4 percent for underpayments and 6 percent for large corporate underpayments. The interest rate for the portion of a corporate overpayment exceeding $10,000 is 1.5 percent. The interest rates are computed by using the federal short-term rate based on daily compounding determined during July 2017.

The Internal Revenue Code provides that the rate of interest is to be 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. 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 of a percentage point.

IR-2017-147

Rev. Rul. 2017-18

Other References:

Code Sec. 6601

CCH Reference – 2017FED ¶174.01

CCH Reference – 2017FED ¶175.01

CCH Reference – 2017FED ¶175.30

CCH Reference – ETR ¶102

CCH Reference – ETR ¶50,615.01

Code Sec. 6621

CCH Reference – 2017FED ¶39,455.021

CCH Reference – FINH ¶21,685.01

CCH Reference – FINH ¶21,685.30

Code Sec. 6622

CCH Reference – 2017FED ¶39,465.01

Tax Research Consultant

CCH Reference – TRC ACCTNG: 33,204.15

CCH Reference – TRC PENALTY: 9,152

Login to read more tax news on CCH® AnswerConnect or CCH® Intelliconnect®.

Not a subscriber? Sign up for a free trial or contact us for a representative.

AUTHOR

CCHTaxGroup

All stories by: CCHTaxGroup