IRS Interest Rates Remain Unchanged for Q1 2010

The IRS announced today that it is keeping interest rates the same for the first quarter of 2010 (Jan-March). These interest rates have remained the same since the 2nd Quarter of 2009.  For taxpayers, businesses, and corporations the interest rates pertinent to IRS underpayment interest are as follows:

• 4% for underpayments – this is calculated by adding the Federal Short Term Rate (1% + a 3% individual taxpayer underpayment interest rate)
• 3% for small businesses or businesses who owe less than $10k
• 6% for corporations with large underpayments (above $10k). This is calculated by taking the Federal Short Term rate (1%) and adding 5% to it.

For more information visit IRS.gov or if you have a problem with an underpayment reach out to us today.

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