In IR-2010-120, the Internal Revenue Service (IRS) announced that interest rates for the first quarter of 2011 would decrease from the fourth quarter. The rates are as follows:

• Three (3) percent for overpayments [two (2) percent in the case of a corporation];
• Three (3) percent for underpayments;
• Five (5) percent for large corporate underpayments; and
• One-half (0.5) percent for the portion of a corporate overpayment exceeding $10,000.

Revenue Ruling 2010-31 Contains Official Rate Announcement

The IRS will publish the rates in Revenue Ruling 2010-31. Contact Vision Payroll if you have any questions on the first quarter rates.