No Change in Interest Rates for
the Third Quarter of 2003

WASHINGTON - The Internal Revenue Service today announced there will be no change in the interest rates for the calendar quarter beginning July 1, 2003. The interest rates are as follows:

• 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.

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 April 2003.

Rev. Rul. 2003-63, announcing the new rates of interest, is attached and will appear in Internal Revenue Bulletin No. 2003-25, dated June 23, 2003.

Previous | Next

2003 IRS News Releases | News Releases Main | Home