

IR-2006-41, March 9, 2006
WASHINGTON — The Internal Revenue Service today announced there will be no change in the interest rates for the calendar quarter beginning April 1, 2006. The interest rates are as follows: 

seven (7) percent for overpayments [six (6) percent in the case of a corporation];
	 


seven (7) percent for underpayments;
	 


nine (9) percent for large corporate underpayments; and
	 


four and one-half (4.5) 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 2006.
Related Item:

Rev. Rul. 2006-12PDF

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