The interest rates on overpayments and underpayments are increased slightly for the first quarter of 2019, as compared with the rates for the prior quarter (Rev Rul. 2018-32). The rates are:
- Noncorporate overpayments and underpayments: 6%
- Corporate overpayments: 5% generally, but 3.5% for corporate overpayments exceeding $10,000
- Corporate underpayments: 6% generally but 8% for large corporate underpayments
The 6% rate is used to figure estimated tax penalties for individuals for the first quarter of 2019 and also the first 15 days of April.
As the Federal Reserve continues to gradually raise rates, it is expected that future IRS interest rates will also increase.
Source : JK Lasser Posts >> Tax News