

WASHINGTON — The Internal Revenue Service today announced there will be a change in the interest rates for the calendar quarter beginning April 1, 2005. The interest rates are as follows:  
Six (6) percent for overpayments [five (5) percent in the case of a corporation].
	 
Six (6) percent for underpayments.
	 
Eight (8) percent for large corporate underpayments.
	 
Three and one-half (3.5) percent for the portion of a corporate overpayment exceeding $10,000.
Under the Internal Revenue Code, the rate of interest is determined on a quarterly basis.  For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus 3 percentage points. 
Generally, in the case of a corporation, the underpayment rate is the federal short-term rate plus 3 percentage points and the overpayment rate is the federal short-term rate plus 2 percentage points. 
The rate for large corporate underpayments is the federal short-term rate plus 5 percentage points. The rate on the portion of a corporate overpayment of tax exceeding $10,000 for a taxable period is the federal short-term rate plus one-half (0.5) of a percentage point.
The interest rates announced today are computed from the federal short-term rate based on daily compounding determined during January 2005.
Rev. Rul. 2005-15, announcing the new rates of interest, is attached and will appear in Internal Revenue Bulletin No. 2005-11, dated March 14, 2005.
Link: Revenue Ruling 2005-15PDF
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