IRS drops interest rates for fourth quarter

The IRS will pay 1% less on tax overpayments and charge 1% less on tax underpayments during the fourth quarter of 2011. For the calendar quarter beginning October 1, 2011, and ending December 31, 2011, IRS interest rates will be 3% on individual overpayments and 2% on corporate overpayments, 3% on individual and corporate underpayments, 5% on large corporate underpayments, and .5% (1/2 a percent) on corporate overpayments exceeding $10,000.