IRS Interest Rates: What’s Staying the Same in 2024

IRS Gift TaxExciting news from the IRS world: Interest rates are holding steady as we dive into 2024! Here’s a fun breakdown of what that means for everyone from individuals to big corporations:

  • For the Individual Taxpayer: You’re looking at a constant 8% annually for both overpayments and underpayments, calculated daily for that extra bit of precision.
  • Corporate Finances: Companies get a 7% rate for overpayments, but if they’ve been extra generous and overpaid by more than $10,000, they get a slight break at 5.5%.
  • Owing Uncle Sam: It’s an 8% rate for underpayments, whether you’re an individual or a company. Fair’s fair!
  • The Big Corporate Players: Larger corporations, watch out! Your underpayments are attracting a 10% rate.

Another Gift – IRS Interest Rates 2024

These rates are all stirred up from the federal short-term rate, spiced up with a few percentage points here and there, based on your payment status and whether you’re flying solo or part of a corporate crew.

For the detail-oriented, the full financial feast is laid out in Revenue Ruling 2023-22, debuting in the Internal Revenue Bulletin 2023-49 on December 4, 2023. This rate recipe has been simmered with the federal short-term rate from the cozy autumn month of October 2023. Mark your calendars and get ready to navigate these steady financial waters!