June 30, 2020 11:15 pm

IRS Interest Rates Decrease for Q3 2020

The IRS has announced that the interest rates applicable to overpayments and underpayments of federal taxes are much lower in the third quarter of 2020 compared with the rates in the second quarter of the year (Rev. Rul. 2020-13). The rates are:

  • 3% for overpayments by individuals and other noncorporate taxpayers
  • 2% for overpayments by corporations
  • 0.5% for the portion of a corporate overpayment exceeding $10,000;
  • 3% for underpayments; and
  • 5% for large corporate underpayments

Note: The IRS also announced the blended rate for 2020, which is used to figure imputed interest on below market demand loans outstanding for the entire year (Rev. Rul. 2020-14). The blended rate is 0.89% (in contrast to last year’s rate of 2.42%).

Tax Glossary


Generally, the receipt of cash or its equivalent accompanying an exchange of property. In a tax-free exchange, boot is subject to immediate tax.

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