Some good news, for those whom owe the IRS money for back taxes. Interest rates will decline by a percentage point after Sept. 30, 2011.
On overdue taxes, the new rate the IRS will charge is 3%. The rate will be 5% on corporations that owe over $100,000.
On refunds, the Service will pay 3% to individuals and 2% to corporations. For corporate refunds over $10,000, the rate on the excess is 0.5%.
If interest rates fall much further, corporations won’t get any interest on big refunds.