IRS Slashes Interest Rates on Overdue Taxes and Refunds Starting 2025
Published Date: 2/5/2025
Notice
Summary
Starting January 1, 2025, the IRS is lowering interest rates on overdue taxes and customs refunds. Both companies and individuals will see a 7% rate on late payments, while refunds will be 7% for individuals and 6% for companies. If you owe or get money back, these new rates will affect how much interest you pay or receive.
Analyzed Economic Effects
2 provisions identified: 1 benefits, 1 costs, 0 mixed.
Lower interest on late tax payments
If you owe taxes or customs duties, the interest charged on late payments (underpayments) will be 7 percent for both corporations and non‑corporations starting January 1, 2025. The notice says this rate is a decrease from the previous quarter.
Lower interest on refunds for individuals, firms
If you are due a refund of taxes or customs duties, the interest paid on refunds (overpayments) for the quarter beginning January 1, 2025 will be 7 percent for non‑corporations and 6 percent for corporations. The notice states these overpayment rates decrease from the previous quarter.
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Key Dates
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