IRS Interest Rates for Second Quarter of 2013 Unchanged

The interest rate that individuals will pay on underpayments remains at 3% for the second quarter of 2013. The interest rate that the IRS will pay on overpayments (tax refunds) will also be 3%. These are the rates that have been in effect since the fourth quarter of 2011.

Most ordinary tax refunds do not earn interest. The IRS does not have to pay interest on tax refunds made within 45 days of the return’s original (unextended) due date. If the return is filed after the due date, then interest starts to accrue within 45 days of the filing of the return. Typically, refunds on returns filed electronically are made within 10 days of e-filing.

The IRS can reset the interest rate on overpayments and underpayments starting on July 1, 2013.

Source: www.irs.gov/pub/irs-drop/rr-13-06.pdf