IRS NEWSWIRE

IR-2006-143

September 11, 2006

No Change In Interest Rates For The Fourth Quarter Of 2006

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

• Eight (8) percent for overpayments [seven (7) percent in the case of a corporation];
• Eight (8) percent for underpayments;
• Ten (10) percent for large corporate underpayments; and
• Five and one-half (5.5) 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 July 2006.

 

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Lifetime Financial Planning, Inc.

Dean Knepper, CPA, CERTIFIED FINANCIAL PLANNER™ professional

2325 Dulles Corner Boulevard, Suite 500, Herndon, Virginia, 20171

208 South King Street, Suite 201, Leesburg, Virginia, 20175

www.lifetimefp.net

Phone: (703) 779-0515 - Fax: (703) 779-7815 - E-mail: info@lifetimefp.net
 

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