IRS Declares Interest Rate Reduction for 2025 Tax Season
The Internal Revenue Service (IRS) has made a significant announcement on November 18, 2024. They have declared that the interest rates will decrease for the calendar quarter commencing on January 1, 2025. This adjustment will have an impact on various tax-related interest calculations, including underpayments, overpayments, and installment agreements.
As the IRS gears up for the forthcoming 2025 tax filing season, this rate reduction is a part of their ongoing efforts to modernize taxpayer services. The announcement is a component of the agency’s quarterly interest rate adjustments, which are determined based on federal short-term rates plus statutory margins.
Moreover, the IRS has issued a reminder to taxpayers about the deadline for the second Voluntary Disclosure Program for Employee Retention Credit corrections. The deadline is set for November 22, 2024. The IRS is urging businesses to rectify incorrect claims to evade future compliance issues.
Source: IRS Official News Release