WASHINGTON ― The Internal Revenue Service today announced that interest rates will remain the same for the calendar quarter beginning Jan. 1, 2013. The rates will be:
· three (3) percent for overpayments [two (2) percent in the case of a corporation];
· three (3) percent for underpayments;
· five (5) percent for large corporate underpayments; and
· one-half (0.5) percent for the portion of a corporate overpayment exceeding $10,000.
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 October 2012 to take effect November 1, 2012, based on daily compounding.
Revenue Ruling 2012-32, announcing the rates of interest, is attached and will appear in Internal Revenue Bulletin 2012-52, dated Dec. 27, 2012.
This story was provided by an individual or organization for use on the Ohio.com community site, http://www.ohio.com/upublish. We do not endorse and cannot guarantee the accuracy of this posting, though we do reject announcements with inappropriate content. You can read our full user agreement here.