December 30, 2020 11:02 pm

IRS Interest Rates for Q1 2021

The interest rates on overpayments and underpayments are unchanged from the fourth quarter of 2020 (Rev Rul. 2020-28). The rates are:

  • Noncorporate overpayments and underpayments: 3%
  • Corporate overpayments: 2% generally, but 0.5% for corporate overpayments exceeding $10,000
  • Corporate underpayments: 3% generally but 5% for large corporate underpayments

The 3% rate is used to figure estimated tax penalties for individuals for the first quarter of 2021 and also the first 15 days of April.

Tax Glossary


The seizure of property by a public authority for a public purpose. Tax on gain realized on many conversions may be deferred.

More terms