May 2005

What's New in Taxes

IRS raises its interest rates

5/1/2005 -

The IRS will charge 6% interest on individual and corporate tax underpayments for the second quarter of 2005 (April 1 through June 30). Large corporate underpayments will be assessed interest at 8%.

On tax overpayments, the IRS will pay individuals 6% and corporations 5%. The interest paid on corporate overpayments exceeding $10,000 will be 3.5%.

All of the rates are one percentage point higher than rates for the first quarter of 2005.

For details or for assistance with your tax planning, give our office a call.