IRS to Drop Interest Rates in January

“For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus 3 percentage points,” the agency said.

“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 IRS said. “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 Monday are computed from the federal short-term rate determined during October 2024.

Credit: Bloomberg