Interest Rates Remain the Same for the Fourth Quarter of 2013

IR-2013-74, Sept. 5, 2013

WASHINGTON — The Internal Revenue Service today announced that interest rates will remain the same for the calendar quarter beginning Oct. 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 July 2013 to take effect Aug. 1, 2013, based on daily compounding.

Revenue Ruling 2013-16 was also released today and will appear in the Internal Revenue Bulletin 2013-40 dated Sept. 30, 2013.

 

Article used courtesy of the IRS

Get In Touch

Share On Social Media

Other Recent Blog Articles

Boeing Voluntary Layoff – Is this the right choice for you?

August 25, 2020

Matt Boelter, Viridian Shareholder and Financial Advisor joins the Viridian channel to share some timely and interesting insight into the Boeing Voluntary Layoff Plan options. Are voluntary layoff plans worth…

Read More

Important IRS Update from Viridian

August 22, 2020

In this short video we address concerns a number of clients have recently had with IRS notices with Shareholder and Tax Team Lead Debbie Baker. The IRS has many COVID…

Read More
Brian Johnson

June 2020 Market Commentary

June 1, 2020

By Brian Johnson, Viridian Chief Investment Officer and Shareholder June 1st, 2020 Summary:  Markets appear to be decoupled from the economic realities that we face. The bear market in the…

Read More