March 27, 1995
IRA Announces Quarterly Interest Rates
WASHINGTON - The Internal Revenue Service today announced that
interest rates for the calendar quarter beginning April 1, 1995,
will increase to nine percent for overpayments, ten percent for
underpayments, and twelve percent for large corporate underpayments.
The overpayment rate for the portion of corporate overpayments
exceeding $10,000 will increase to 7.5 percent.
Under the Internal Revenue Code, the rate of interest is
determined on a quarterly basis, the rate on underpayments is one
percent higher than the rate on overpayments, and the rate for large
corporate underpayments is two percent higher than the rate on
underpayments. The interest paid on the portion of a corporate
overpayment of tax exceeding $10,000 for a taxable period is the sum
of the federal short-term rate plus 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 January
Rev. Rul. 95-33, announcing the new rates of interest, is
attached and will appear in Internal Revenue Bulletin No. 1995-15,
dated April 10, 1995.
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