New Formula Needed To Calculate Interest Rate on Unpaid Taxes
GGD-81-20
Published: Oct 16, 1980. Publicly Released: Oct 16, 1980.
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Highlights
The recent volatility in market interest rates prompted GAO to review the interest rate that the Internal Revenue Service (IRS) assesses on delinquent taxes and pays on overpayments.
Recommendations
Matter for Congressional Consideration
| Matter | Status | Comments |
|---|---|---|
| Congress should amend the Internal Revenue Code (IRC) to establish semiannual adjustments of the IRS interest rate, stating it to two decimal places, as a practical means of maintaining the rate in line with government borrowing rates. Also, changes should be limited to .025 percent or more. |
Closed
|
Please call 202/512-6100 for additional information. |
| Congress should amend IRC Code to require IRS to establish the IRS interest rate at an appropriate government borrowing rate plus a factor for administrative expenses. |
Closed
|
Please call 202/512-6100 for additional information. |
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Topics
Interest ratesTax administrationTax expendituresTaxesTaxpayersUnpaid taxesDelinquent taxesAdministrative costsTax returnsTax refunds