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

Imputed interest

Interest deemed earned on seller-financed sales or low-interest loans, where the parties’ stated interest rate is below the applicable IRS federal rate.

More terms