Tax News

CCH (cch.taxgroup.com) reports:

  As previously established in Rev. Rul. 2008-47 (I.R.B. 2008-39, 760; TAXDAY, 2008/08/29, I.1), the IRS announced that the interest rates for the calendar quarter beginning October 1, 2008, will be six percent for overpayments (five percent in the case of a corporation), six percent for underpayments and eight percent for large corporate underpayments. The interest rate for the portion of a corporate overpayment exceeding $10,000 is 3.5 percent. The interest rates are computed by using the federal short-term rate based on daily compounding determined during August 2008.

  The Internal Revenue Code 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-2008-111,
2008FED ¶46,597

Other References:

 
Code Sec. 6601

  CCH Reference - 2008FED ¶174.01

  CCH Reference - 2008FED ¶175.01

  CCH Reference - 2008FED ¶175.30

 
Code Sec. 6621

  CCH Reference - 2008FED ¶39,455.01

  CCH Reference - 2008FED ¶39,455.51

 
Code Sec. 6622

  CCH Reference - 2008FED ¶39,465.01

  Tax Research Consultant

  CCH Reference - TRC ACCTNG: 33,204.15
CCH Reference - TRC PENALTY: 9,152