January 8, 2020 1:14 am

IRS Interest Rates for Q1 2020

The interest rates on overpayments and underpayments are unchanged from the fourth quarter of 2019 (Rev Rul. 2019-28). The rates are:

  • Noncorporate overpayments and underpayments: 5%
  • Corporate overpayments: 4% generally, but 2.5% for corporate overpayments exceeding $10,000
  • Corporate underpayments: 5% generally but 7% for large corporate underpayments

The 5% rate is used to figure estimated tax penalties for individuals for the first quarter of 2020 and also the first 15 days of April.

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Tax Glossary

Installment sale

A sale of property that allows for tax deferment if at least one payment is received after the end of the tax year in which the sale occurs. The installment method does not apply to year-end sales of publicly traded securities. Dealers may not use the installment method. Investors with very large installment balances could face a special tax.

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