IR-2005-65, June 3, 2005 WASHINGTON — The Internal Revenue Service today announced there will be no change in the interest rates for the calendar quarter beginning July 1, 2005. The interest rates are as follows: • Six (6) percent for overpayments (five (5) percent in the case of a corporation); • Six (6) percent for underpayments; • Eight (8) percent for large corporate underpayments; and • Three and one-half (3.5) 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 April 2005. Rev. Rul. 2005-35, announcing the new rates of interest, will appear in Internal Revenue Bulletin No. 2005-24, dated June 13, 2005. Link: Rev. Ruling 2005-35PDF Subscribe to IRS Newswire
