April 22, 2020 11:04 pm

IRS Interest Rates for Q2 2020

The interest rates on overpayments and underpayments for the second quarter of 2020 are unchanged from the first quarter rates (Rev Rul. 2020-7). 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 15 days of April.

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Tax Glossary

Nonrecourse financing

Debt on which a person is not personally liable. In case of nonpayment, the creditor must foreclose on property securing the debt. At-risk rules generally bar losses where there is nonrecourse financing, but an exception applies to certain nonrecourse financing for real estate.

More terms