The IRS will be raising its interest payment calculations for the first time since 2010, according to Accounting Today. IRS Revenue Ruling 2016-06, which the IRS said will be dated April 4, increases the interest rates for the cases of overpayments and underpayments. They are: 

• four (4) percent for overpayments [three (3) percent in the case of a corporation];
• · one-and-one-half (1.5) percent for the portion of a corporate overpayment exceeding $10,000;
• four (4) percent for underpayments; and
• six (6) percent for large corporate underpayments.

The new interest rates are directly linked to the federal short-term interest rate. The interest rate on overpayment is the sum of the fed rate, plus 3 percent for individuals and 2 percent for corporations. The underpayment rate is fed rate plus 3 points. The Federal Reserve increased the interest rate in December from 0 percent to 5 percent.