IRS News Release No: IR-2001-113
WASHINGTON – The Internal Revenue Service today announced that interest rates for the calendar quarter beginning January 1, 2002, will be lowered by one percentage point in each category to:
• Six (6) percent for overpayments [five (5) percent in the case of a corporation];
• Six (6) percent for underpayments;
• Eight (8) percent for large corporate underpayments; and
• Three and one-half (3.5) 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 based on daily compounding determined during October 2001. Rev. Rul. 2001-63, announcing the new rates of interest, is attached and will appear in Internal Revenue Bulletin No. 2001-52, dated December 24, 2001.
