Interest rates for overpayments and underpayments will remain the same for the calendar quarter beginning Oct. 1, 2025, the IRS said in an announcement on Aug. 25.
The IRS issues refunds without interest for overpayments until 45 days pass, after which interest is paid to the taxpayer. For individuals, the rate for overpayments and underpayments will be 7 percent per year, compounded daily.
It remains at 6 percent for corporations. The rate is determined every quarter, and the current rates are set for the period Oct. 1 to Dec. 31.
For corporate overpayments exceeding $10,000, the interest rate is 4.5 percent, and for large corporate underpayments, it’s 9 percent.
For non-corporations, the overpayment and underpayment rate is the federal short-term rate plus 3 percentage points. The current annual federal rate is 4.33 percent….