Interest - Itemized Deduction

The IRS has announced that interest rates will not change for the first quarter of 2012, which begins on January 1, 2012 and goes through March 31, 2012. Interest Rates for Q1 2012 IRS interest rates will continue to be charged as follows: •3% for overpayments (2% for corporations) •3% for underpayments •5% for large corporate underpayments •0.5% for the portion of a corporate overpayment in excess of $10k. Additionally, the 3% IRS underpayment interest rate applies to estimated tax underpayments for the first quarter of 2012 and will continue through April 15, 2012. The federal short-term rate will also remain the same throughout this period of time.