INTEREST RATES FOR TAX OVERPAYMENTS AND UNDERPAYMENTS

The IRS has announced the interest rates for tax overpayments and underpayments for the calendar quarter beginning October 1, 2006.

For noncorporate taxpayers, the rate for both underpayments and overpayments will be 8% (no change from before).

For corporations, the overpayment rate will be 7% (no change from before). Corporations will receive 5.5% (no change from before) for overpayments exceeding $10,000. The underpayment rate for corporations will be 8% (no change from before), but will be 10% (no change from before) for large corporate underpayments.