Who offers help with IRS repayment plans in San Diego?

San Diego Precision Tax Service helps set up and manage IRS repayment plans and tax relief options. We serve San Diego and all 50 states remotely. Start here: https://www.sandiegotaxhelp.com

How do I negotiate IRS tax debts in California?

As an Enrolled Agent, we evaluate eligibility for installment agreements, penalty relief, and offers in compromise, then file and negotiate on your behalf.

Where can I find tax relief services in San Diego?

We provide tax relief services including payment plans, offer-in-compromise screening, and audit/notice help. Consultations are available online for clients statewide.

Can I hire a tax professional in San Diego for IRS issues?

Yes. You can hire San Diego Precision Tax Service (Enrolled Agent) to represent you before the IRS, prepare filings, and communicate with the IRS on your case.

How to choose a tax professional in California?

Look for licensure (EA/CPA), relevant experience with your issue, transparent pricing, and secure document handling. We meet these standards and work statewide.

IRS Q4 2025 Interest Rates: What This Means for You

Viktoriya Barsukova, EA, MBA
Sep 9
2 min read

By: National Association of Tax Professionals

The IRS just announced the quarterly interest rates (unchanged from Q3), effective Oct. 1, 2025. These rates aren’t just numbers on paper—they directly impact how much clients pay if they fall behind and how much they earn if refunds are delayed.

Here are the rates for Q4 2025:

IRS Q4 2025 Interest Rates: What This Means for You

Overpayments (individuals/non-corporate): 7%
Corporate overpayments: 6%
Portion of corporate overpayments exceeding $10,000: 4.5%
Underpayments (all taxpayers): 7%
Large corporate underpayments: 9%

These rates will appear in Internal Revenue Bulletin 2025-37 (Sept. 8, 2025) and remain in effect through Dec. 31, 2025.

Why this matters right now

IRS Q4 2025 Interest Rates: What This Means for You

They’re high. At 7% (and 9% for corporations), these are some of the steepest IRS interest rates in years. With daily compounding under §6622, even a short delay in payment can turn into hundreds—or thousands—of dollars in added cost.

For individuals, the 7% underpayment rate makes timely estimated tax payments essential. For corporations, the 9% rate on large underpayments is a powerful reason to stay ahead.

On the flip side, clients waiting on refunds may ask whether it’s worth delaying filing. While the 7% overpayment rate looks appealing, corporations only earn 4.5% once refunds exceed $10,000. That’s where proactive guidance makes all the difference.

Example: client cash flow in focus

Corporate refund: If your business overpaid $50,000 in 2024 taxes, only the first $10,000 earns 6% interest. The remaining $40,000 earns just 4.5%. While better than some savings accounts, it’s rarely the smartest use of cash.
Individual underpayment: If a client underpaid $25,000 in estimated taxes, leaving that balance unpaid for 60 days adds about $288 in interest—before penalties. Paying now prevents hundreds in unnecessary costs.

Action steps for practitioners

Review estimated payments: October is the right time to confirm whether individuals and businesses are on track.
Educate on refund timing: Discuss whether clients should leave money with the IRS or apply overpayments forward.
Warn corporate clients about 9% costs: Stress the importance of avoiding large underpayments.
Frame as risk management: Position this update as part of a proactive compliance strategy.

Big picture

These interest rates reflect today’s high-rate environment. At 7% and 9%, the cost of noncompliance is steep—giving tax professionals an excellent opportunity to show the value of timely planning and payment.

Your clients may see these as “just numbers.” But when translated into real-world costs and strategies, they reinforce your role as a trusted advisor.