The IRS recently announced that interest rates for the calendar quarter beginning July 1, 2008, will drop by one percentage point. The new rates will be:
- Five (5) percent for overpayments [four (4) percent in the case of a corporation];
- Five (5) percent for underpayments;
- Seven (7) percent for large corporate underpayments; and
- Two and one-half (2.5) percent for the portion of a corporate overpayment exceeding $10,000.
These rates are computed from the federal short-term rate based on daily compounding determined during April 2008.