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January 4, 2019 1:06 am
IRS Interest Rates for Q1 2019 Increased
The interest rates on overpayments and underpayments are increased slightly for the first quarter of 2019, as compared with the rates for the prior quarter (Rev Rul. 2018-32). The rates are:
- Noncorporate overpayments and underpayments: 6%
- Corporate overpayments: 5% generally, but 3.5% for corporate overpayments exceeding $10,000
- Corporate underpayments: 6% generally but 8% for large corporate underpayments
The 6% rate is used to figure estimated tax penalties for individuals for the first quarter of 2019 and also the first 15 days of April.
As the Federal Reserve continues to gradually raise rates, it is expected that future IRS interest rates will also increase.
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Foreign tax credit
A credit for income taxes paid to a foreign country or U.S. possession. 401(k) plan. A deferred pay plan, authorized by Section 401(k) of the Internal Revenue Code, under which a percentage of an employee’s salary is withheld and placed in a savings account or the company’s profit-sharing plan. Income accumulates on the deferred amount until withdrawn by the employee at age 59?
