United States: IRS releases interest rates on tax overpayments and underpayments for 2014 first quarter

December 16, 2013

The US Internal Revenue Service (IRS) has issued Revenue Ruling 2013-25 with the announcement of the interest rates on tax overpayments (i.e., tax refunds) and tax underpayments (i.e., tax assessments and late tax payments) for the calendar quarter beginning 1 January 2014.

The IRS has also issued an accompanying news release (IR-2013-96) dated 9 December 2013.

The interest rates, which apply to amounts bearing interest during that calendar quarter, are as follows:

  • 3% for non-corporate overpayments
  • 2% for corporate overpayments up to US$10,000
  • 0.5% for corporate overpayments to the extent in excess of US$10,000
  • 3% for non-corporate and corporate (other than large corporate) underpayments
  • 5% for large corporate underpayments (i.e., underpayments in excess of US$100,000)

Revenue Ruling 2013–25 also includes:

  • Interest factors for daily compound interest for an annual rate of 0.5%
  • Tables with the overpayment and underpayment interest rates for prior periods

The interest rates on overpayments and underpayments for the first quarter of 2014 are unchanged from the rates announced for the fourth quarter of 2013.

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