| IRS dropped Interest Rates again in 3rd quarter 2008 on overdue taxes.
The IRS has announced that the interest rates on overdue taxes has been been further reduced.
1. For individuals:
For individuals who owe back taxes the interest rate has been reduced to 5%.
For individuals who are entitled a refund, the interest rate paid will also be 5%.
2. For Corporations:
For Corporations that owe more than $100,000 in back taxes the interest rate remains fairly high at 7%.
For Corporations that are entitled to a tax refund, the interest rate paid will be only 4%, provided the refund is less than $10,000. The interest rate drops to 2.5% for corporation refunds in excess of $10,000.
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