January 3, 2018 1:11 am

IRS Interest Rates for Q1 2018 Unchanged

The interest rates on overpayments and underpayments are unchanged for the first quarter of 2018, which runs through March 31, 2018 (Rev Rul. 2017-25). The rates are:

  • Noncorporate overpayments and underpayments: 4%
  • Corporate overpayments and underpayments: 3%
  • Large corporate underpayments: 6%
  • Corporate overpayments exceeding $10,000: 1.5%

The 4% rate is used to figure estimated tax penalties for individuals.

These rates have remained constant since April 1, 2016. However, as the Federal Reserve raises rates, it is expected that IRS interest rates will be increased in the future.

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Tax Glossary

Gift tax

Gifts in excess of an $12,000-per-donee annual exclusion are subject to gift tax, but the tax may be offset by a gift tax credit.

More terms