IRS

WASHINGTON — The Internal Revenue Service last week announced that
interest rates will remain the same for the calendar quarter beginning
July 1, 2021.

The rates will be:

  1. 3% for overpayments (two (2) % in the case of a corporation),
  2. 0.5% for the portion of a corporate overpayment exceeding $10,000,
  3. 3% for underpayments and
  4. 5% for large corporate underpayments. 

Under the Internal Revenue Code, the rate of interest is
determined on a quarterly basis. For taxpayers other than corporations,
the overpayment and underpayment rate is the federal short-term rate
plus 3 percentage points.

Generally, in the case of a corporation, the underpayment rate is the
federal short-term rate plus 3 percentage points and the overpayment
rate is the federal short-term rate plus 2 percentage points. The rate
for large corporate underpayments is the federal short-term rate plus 5
percentage points. The rate on the portion of a corporate overpayment of
tax exceeding $10,000 for a taxable period is the federal short-term
rate plus one-half (0.5) of a percentage point.

The interest rates announced today are computed from the federal
short-term rate determined during April 2021 to take effect May 1, 2021,
based on daily compounding.

Revenue Ruling 2021-10 PDF, announcing the rates of interest, is attached and will appear in Internal Revenue Bulletin 2021-25, dated June 21, 2021.



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