Interest Rates Remain the Same for the Third Quarter of 2015

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WASHINGTON — The Internal Revenue Service today announced that interest rates will remain the same for the calendar quarter beginning July 1, 2015. The rates will be:

•three (3) percent for overpayments [two (2) percent in the case of a corporation];
•one-half (0.5) percent for the portion of a corporate overpayment exceeding $10,000
•three (3) percent for underpayments; and
•five (5) percent for large corporate underpayments.

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 April 2015 to take effect May 1, 2015, based on daily compounding.

Revenue Ruling 2015-12 announcing the rates of interest is attached and will appear in Internal Revenue Bulletin 2015-26, dated June 29, 2015.

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