IRS NEWSWIRE

IR-2007-193

November 28, 2007

Interest Rates Drop for the First Quarter of 2008

WASHINGTON – The Internal Revenue Service today announced that interest rates for the calendar quarter beginning January 1, 2008, will drop by one percentage point. The new rates will be:

- Seven (7) percent for overpayments [six (6) percent in the case of a corporation]
- Seven (7) percent for underpayments
- Nine (9) percent for large corporate underpayments
- Four and one-half (4.5) 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 October 2007.

 

________________________________________________________________________________________________________________________

 

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
 

Hourly Fee Only | Financial Planning | Investment Advice | College Savings Plans | College Financial Aid |
Tax Planning & Prep | Planner Profile | Media - LFP in the News | Financial Advice Column |
Links to Financial Info | Meeting Questionnaire | Driving Directions | Contact Us | Home |

©2001-2003 Lifetime Financial Planning, LLC, ©2004-2008 Lifetime Financial Planning, Inc. All Rights Reserved