First Quarter of 2019 Interest Rates Increase

admin • October 29, 2018

The Internal Revenue Service announced that interest rates will increase for the calendar quarter beginning January 1, 2019.  The rates will be:

  • six (6) percent for overpayments [five (5) percent in the case of a corporation];
  • three and one-half (3.5) percent for the portion of a corporate overpayment exceeding $10,000;
  • six (6) percent for underpayments; and
  • eight (8) percent for large corporate underpayments.

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 determined during October 2018 to take effect November 1, 2018, based on daily compounding.

Revenue Ruling 2018-32 , announcing the rates of interest, is attached and will appear in Internal Revenue Bulletin 2018-51, dated December 17, 2018.

irs.gov

Disclaimer: The information on this website and blog is for general informational purposes only and is not professional advice. We make no guarantees of accuracy or completeness. We disclaim all liability for errors, omissions, or reliance on this content. Always consult a qualified professional for specific guidance.

RECENT POSTS

Probate Advances vs Probate Loans: Key Differences Explained
April 21, 2025
In this article, we’ll explain probate advances and loans, how they work, what sets them apart, and important legal considerations in the U.S. Learn More!
What to Do if You Lose Your Trust Documents? - Florida Tax Lawyers
April 7, 2025
If you have lost your Trust documents and can't find a copy, you will need to revoke the lost Trust and create a new Trust to replace the old one. Learn more!
Advance Directive vs. Power of Attorney: Key Differences
March 24, 2025
Advance Directive vs Power of Attorney. Understanding the key differences can help you make the right choices for yourself and your loved ones.
What Happens If You Pass Away Without a Will? - Florida tax Lawyers
March 3, 2025
What happens if you die without a Will is a question frequently asked by estate planning professionals, and We've tried to address it in our guide. Learn More!
Trust vs Will vs Probate: Which is Better for You?  - Florida Tax Lawyers
February 17, 2025
Trust, wills, and probate are three common legal tools for estate planning. But what are the differences, and which is best for you? Learn More!

CONTACT US

CONTACT US