MONEY: AN IRS I.O.U.

Guess who's offering low-rate loans? The Internal Revenue Service, though that's not how the agency would describe it. The IRS just lowered the interest rate it charges for underpayment of taxes from 5 percent to 4 percent through Sept. 1. That means that if you are paying off other high-rate debts, it may make sense to underpay your taxes now and use the savings to pay off your other bills, suggests Martin Nissenbaum, director of personal income-tax planning for Ernst & Young. Those who pay estimated taxes can strategically short their payments. Taxpayers who get taxes withheld at work can adjust their W-4 forms to claim more exemptions, especially if they usually get refunds. But don't go overboard. The rate will probably rise in September, and the IRS will catch up with you on April 15.

MONEY: AN IRS I.O.U. | News