OCR Text |
Show IRS Raises Interest The interest rate for federal tax underpayments and overpayments over-payments has been increased from six percent a year to 12 percent a year, effective Feb. 1, 1980, the Internal Revenue Service said. THE 12 percent annual rate . also applies to the addition to tax for underpayment of individual indi-vidual and corporate estimated esti-mated taxes, and the effective date is the same. Taxpayers whose 1979 taxes are not paid on time will be subject to the new 12 percent interest on the unpaid balance. ON THE other hand, the 12 percent rate also applies to refunds re-funds which are not paid by the IRS within 45 days of the due date of the return. Generally, the IRS has 45 days from the due date of the return before any interest must be paid. For the average taxpayer tax-payer who filed by April 15, interest will be paid on refunds the IRS makes after June 1 . If IRS fails to make payment of the refund within this period, interest will be paid from either the due date of the return or the filing date, whichever is later. |