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No Change in Interest Rates for the Second Quarter of 2006

IR-2006-41, March 9, 2006

WASHINGTON — The Internal Revenue Service today announced there will be no change in the interest rates for the calendar quarter beginning April 1, 2006. The interest rates are as follows: 

  • seven (7) percent for overpayments [six (6) percent in the case of a corporation];

  • seven (7) percent for underpayments;

  • nine (9) percent for large corporate underpayments; and

  • four and one-half (4.5) 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 January 2006.

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Page Last Reviewed or Updated: 18-Aug-2012