Underpayment Rate Changes to 5% 4/1/18

[Abby Normal]

 

Quarterly Interest Rates Increase for 2^nd Quarter 2018

 

IRS has announced the interest rates for the 2^nd quarter of 2018.  As of April 1, 2018, the rates increase to:

 

-        5% for most overpayments (4% for corporation overpayments)

-        5% for underpayments

-        7% for large corporate underpayments

-        2.5% for corporate overpayments exceeding $10,000

 

As in past years when a rate change begins April 1^st, for purposes of Form 2210, the former rate of 4% continues to apply through the unextended due date, April 17, 2018.

 

Revenue Ruling 2018-7

https://www.irs.gov/newsroom/interest-rates-increase-for-the-second-quarter-of-2018

[JohnH]

These rates are still a bargain for a taxpayer who can't pay. Even after adding the FTP penalty, they're getting a reasonable interest rate for what's essentially an unsecured loan.