November 21, 1995
IRS Announces Quarterly Interest Rates
WASHINGTON - The Internal Revenue Service today announced that
interest rates for the calendar quarter beginning January 1, 1996,
will remain at eight percent for overpayments, nine percent for
underpayments, and eleven percent for large corporate underpayments.
The overpayment rate for that quarter for the portion of corporate
overpayments exceeding $10,000 will remain at 6.5 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 October
Rev. Rul. 95-78, announcing the new rates of interest, is
attached and will appear in Internal Revenue Bulletin No. 199549,
dated December 4, 1995.
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