December 2, 2011 9:24 pm

IRS Interest Rates Unchanged for the First Quarter of 2012

The interest rate that individuals will pay on underpayments remains at 3% for the first quarter of 2012. The interest rate that the IRS will pay on overpayments (tax refunds) will also be 3%. 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

Tax Glossary

Tax year

A period (generally 12 months) for reporting income and expenses.

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