You Read Correctly! Yes it's true, as of today, the IRS has announced that Interest Rates will be dropping for at least the first quarter of 2009. Now remember, this is the IRS, so it's not as huge as a drop as we would like it. But then again, this is the IRS so anything they do that's good for the taxpayer is generous.
The Rate Changes will be as follows:
I've linked the rest of the article here: Interest Rates Drop for the First Quarter of 2009
- Five (5) percent for overpayments [four (4) percent in the case of a corporation];
- Five (5) percent for underpayments;
- Seven (7) percent for large corporate underpayments; and
- Two and one-half (2.5) percent for the portion of a corporate overpayment exceeding $10,000.
What's this mean for us: This is a step in the right direction, because the IRS is beginning to recognize that it's getting hard to fight against the taxpayer, and is trying to work with them more. Hopefully we will see more of this behavior in the future. Until then, thanks for reading!
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