What is the interest rate from date of overpayment on appeals?

• A. 3%
• B. 5%
• C. 7%
• D. 9%

Answer: (B)

Interest on an overpayment tied to an appeal starts from the date the overpayment is made and is calculated at a fixed five percent per year, typically using a daily rate. This rate is used to compensate for the time value of money while the appeal is pending and until the refund (or credit) is issued. The five percent rate is the standard rate in this context, so it’s the correct choice. The other percentages don’t apply here because they aren’t the established rate for overpayments on appeals.