IRS Slashes Interest on Late Customs Duties This Quarter
Published Date: 2/5/2025
Notice
Summary
Starting January 1, 2025, the IRS is lowering interest rates on overdue customs payments and refunds. Both companies and individuals will pay 7% interest on late payments, but companies get a slightly better 6% rate on refunds. If you deal with customs duties, these new rates could save or cost you a bit more this quarter!
Analyzed Economic Effects
3 provisions identified: 1 benefits, 2 costs, 0 mixed.
Lower Interest on Late Customs Payments
If you owe customs duties and pay late, the interest rate charged for the quarter beginning January 1, 2025 is 7 percent for both corporations and non-corporations. These underpayment interest rates have decreased from the previous quarter and apply from January 1, 2025 through March 31, 2025.
Refund Interest for Non-Corporations Set at 7%
If you are a non-corporation importer (for example, an individual or sole proprietor) who overpaid customs duties, the interest paid on refunds for the quarter beginning January 1, 2025 is 7 percent. This refund interest rate for non-corporations has decreased from the previous quarter and applies from January 1, 2025 through March 31, 2025.
Corporate Refund Interest Falls to 6%
If your company overpaid customs duties, the interest rate paid on corporate overpayments for the quarter beginning January 1, 2025 is 6 percent. This corporate refund rate has decreased from the previous quarter and applies from January 1, 2025 through March 31, 2025.
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Key Dates
Department and Agencies
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