Tax News

CCH (cch.taxgroup.com) reports:

The IRS has announced that the interest rates for the calendar quarter beginning January 1, 2008, will drop to 7 percent for overpayments (6 percent in the case of a corporation), 7 percent for underpayments, and 9 percent for large corporate underpayments. The interest rate for the portion of a corporate overpayment exceeding $10,000 will drop to 4.5 percent. The interest rates are computed by using the federal short-term rate based on daily compounding determined during October 2007.
Code Sec. 6621 provides that the rate of interest is to be determined on a quarterly basis. For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus three percentage points. Generally, in the case of a corporation, the underpayment rate is the federal short-term rate plus three percentage points, and the overpayment rate is the federal short-term rate plus two percentage points. The rate for large corporate underpayments is the federal short-term rate plus five 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 of a percentage point.
IR-2007-193, 2007FED ¶46,729
Rev. Rul. 2007-68, 2007FED ¶46,730
Rev. Rul. 2007-68, FINH ¶30,568
Rev. Rul. 2007-68, ETR ¶66,841
Other References:
Code Sec. 6601
CCH Reference - 2007FED ¶174.01
CCH Reference - 2007FED ¶175.01
CCH Reference - 2007FED ¶175.30
CCH Reference - ETR ¶102
CCH Reference - ETR ¶50,615.01
Code Sec. 6621
CCH Reference - 2007FED ¶39,455.01
CCH Reference - 2007FED ¶39,455.51
CCH Reference - FINH ¶21,685.01
CCH Reference - FINH ¶21,685.30
Code Sec. 6622
CCH Reference - 2007FED ¶39,465.01
Tax Research Consultant
CCH Reference - TRC ACCTNG: 33,204.15
CCH Reference - TRC PENALTY: 9,152