IRS Announces the Quarterly Interest Rates

WASHINGTON - The Internal Revenue Service today announced that interest rates for the calendar quarter beginning July 1, 1994, will increase to seven percent for overpayments, eight percent for underpayments, and ten percent for large corporate underpayments.

Under the Internal Revenue Code, the rate of interest is determined on a quarterly basis, the rate on underpayments in one percent higher than the rate on overpayments, and the rate for large corporate underpayments is two percent higher than the rate on underpayments. The rate announced today is computed from the federal short-term rate based on daily compounding determined during April 1994.

Rev. Rul. 94-39, announcing the new rates of interest, appears in Internal Revenue Bulletin No. 1994-26, dated 6/27/94.

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