Porter Law Office, LLC frequently informs its clients of IRS updates that may affect how their tax debt will be settled. In Rev. Rul. 2014-14, the IRS set the interest rate for overpayments and underpayments of tax. The revenue ruling may be found HERE. The IRS indicates that the rates will be unchanged from the second quarter. The rates are:
- 3 percent for overpayments (2 percent for corporations);
- 3 percent for underpayments
- 5 percent for large corporate underpayments
- 0.5 percent for the portion of a corporate overpayment exceeding $10,000
The IRS imposes interest for any unpaid tax from the time the payment of tax was due to the date of payment. The interest is calculated on a per diem basis, meaning that interest is calculated for each day the balance due is not paid in full. If you have the ability to pay your tax liability in full now, it is typically recommended to do so. Full payment will stop the accrual of interest and penalties. If you cannot pay in full now, and would like to discuss payment options, contact Columbus, Ohio tax attorney Matthew R. Porter at Porter Law Office, LLC for a free consultation.