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Interest Rates Remain the Same for the Fourth Quarter of 2014

posted Sep 6, 2014, 11:10 PM by Zaher Fallahi   [ updated Oct 24, 2014, 10:32 PM ]

WASHINGTON — The Internal Revenue Service today announced that interest rates will remain the same for the calendar quarter beginning Oct. 1, 2014.  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 2014 to take effect Aug. 1, 2014, based on daily compounding.

Zaher Fallahi has specialized as Orange County Dental CPA and Doctor’s CPA, and Los Angeles Dental CPA and Doctor’s CPA since 1992. Los Angeles (310) 719-1040 and Orange County ( 714) 546-4272 or e-mail : taxattorney@zfcpa.com

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