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.

Tax Glossary

Nonrecourse financing

Debt on which a person is not personally liable. In case of nonpayment, the creditor must foreclose on property securing the debt. At-risk rules generally bar losses where there is nonrecourse financing, but an exception applies to certain nonrecourse financing for real estate.

More terms