IRS Announces Interest Rates for Calendar Quarter Beginning January 1, 2019 (IR-2018-244; Rev. Rul. 2018-32)

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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