IRS Logo
Print - Click this link to Print this page

No Change in Interest Rates for the First Quarter of 2004

IR-2003-138, Dec. 12, 2003

WASHINGTON — The Internal Revenue Service today announced there will be no change in the interest rates for the calendar quarter beginning Jan. 1, 2004. The interest rates are as follows:

  • four (4) percent for overpayments [three (3) percent in the case of a corporation];
  • four (4) percent for underpayments;
  • six (6) percent for large corporate underpayments; and 
  • one and one-half (1.5) 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 2003.

Related Item: Revenue Ruling 2003-126

Subscribe to IRS Newsire

Page Last Reviewed or Updated: 18-Aug-2012