What are the IRS interest rates?
The interest rates that the IRS charges are determined quarterly by the IRS based on the existing federal short term rate.
What are the interest rates the IRS charges?
The current tax refunds interest rates (for over-payments) for individual taxpayers are the same as those applicable to assessments (underpayments).
Examples of the IRS interest rates
For the tax year 2006, first quarter (January - March 31) of 2007, the interest rates charged by the IRS are 8% for tax refunds and tax assessments.
Tax assessments interests
For assessments of additional taxes, the interest begins running on the unextended due date of the tax return.
Tax refunds interests
With tax refunds, no interest is allowed if the overpayment is refunded to the taxpayer within 45 days of the date when the tax return is filed. If a tax return is filed early (earlier than the due date of April 15), the tax return is considered to have been filed on the due date (April 15 for most people).