19 November 2025

IRS Interest Rates to Remain Steep in January — but There’s Hope for Cuts in 2026

Internal Revenue Service headquarters
Pamela Au / Shutterstock.com

The penalty for underpaying your taxes will remain the same this winter as it is now. The IRS has announced that the interest rates it charges for underpayments will not change for the first quarter of 2026 — Jan. 1 through March 31. The rates the federal agency pays for overpayments also will remain the same. (Yes, if you pay more in federal income taxes than you owed, the government owes you…



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