Recently, the IRS announced that they would be lowering interest rates for the first quarter of 2008, beginning on January 1, 2008. According to IRS codes the interest rate is determined on a quarterly basis and can either be changed or kept the same. This upcoming quarter the rates will drop by 1% and be set as follows:
- seven (7) percent for overpayments [six (6) percent in the case of a corporation]
- seven (7) percent for underpayments
- nine (9) percent for large corporate underpayments, and
- four and one-half (4.5) percent for the portion of a corporate overpayment exceeding $10,000.