IRS interest rates for second quarter will drop 1%. The new rates are:
Individual Overpayments |
6% |
Corporate Overpayments |
5% |
Underpayments |
6% |
Large Corporate Underpayments |
8% |
Corporate Overpayments Exceeding $10,000 |
3.5% |
These new rates go into effect April 1, 2008. These low rates may tempt you to delay paying your taxes to help your cash flow. DON"T do it. When you tack on the late payment penalty of ½ % per month it really cost you 12% annually if you pay your taxes late.
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