The IRS has announced that, as of January first of 2011, they will be lowering their interest rates by 1% as opposed to what the rates were in this last quarter of 2010.
In the Personal Finance Bulletin, Wallace Manfrin wrote a December 8th article entitled “1st Quarter 2011 Interest Rates Used by IRS to Decrease by 1%” that concerns the rate change. He explains the good news for those who will have to pay interest on taxes owed.
Manfrin explains that the interest rates are being lowered from 4% to 3% for the individual taxpayer and from 6% to 5% for businesses and corporations. Also concerning overpayments, the rates will drop from 4% to 3% for individual tax filers and from 3% to 2% for businesses and corporations.
Try to get the debt paid off as soon as possible because the rates quoted will only be good for three months. Manfrin clarifies that the IRS’s code is valid for a quarter and then they change it.
Officially, this announcement appears in the Internal Revenue Bulletin No. 2010-52 which was released December 27th of this year.
Beyond that, Manfrin mentions that the IRS, to save money and also to make things more efficient is encouraging taxpayers to e-file.
Overall, it seems the IRS has been embracing the technical world and is also encouraging concerned filers to keep up with rate changes and other news on Twitter.Tags: IRS Interest Rates