The over and underpayment interest rates for the first quarter 2019. The fourth quarter begins on January 1, 2019. The rates will be:
– 6 percent for overpayments,
– 5 percent for corporate overpayments,
– 6 percent for underpayments, and
– 8 percent for large corporate underpayments.
The interest rate for the part of a corporate overpayment exceeding $10,000 is 3.5 percent.
First Quarter 2019 Interest Rates
The IRS computes these interest rates quarterly. The first quarter rates are based on the federal short-term rate for October 2018.
For noncorporate taxpayers:
– the overpayment rate is the short-term rate plus three percent, and
– the underpayment rate is the short-term rate plus three percent.
For corporate taxpayers:
– the underpayment rate is the short-term rate plus three percent.
– the overpayment rate is the federal short-term rate plus two percent.
– The rate on the part of a corporate overpayment that exceeds $10,000 for a tax period is the short-term rate plus one-half percent.
IR-2018-244Rev. Rul. 2018-32
Other References:
Code Sec. 6601
– CCH Reference – 2018FED ¶174.01
– CCH Reference – 2018FED ¶175.01
– CCH Reference – 2018FED ¶175.30
– CCH Reference – ETR ¶102
CCH Reference – ETR ¶50,615.01
CCH Reference – ETR ¶67,121
Code Sec. 6621
CCH Reference – 2018FED ¶39,455.021
CCH Reference – FINH ¶21,685.01
CCH Reference – FINH ¶21,685.30
Code Sec. 6622
CCH Reference – 2018FED ¶39,465.01
Tax Research Consultant
CCH Reference – TRC ACCTNG: 33,204.15
CCH Reference – TRC PENALTY: 9,152
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