March 29, 2021 2:29 am

IRS Interest Rates for Q2 2021

The interest rates on overpayments and underpayments are unchanged from the first quarter of 2021 (Rev Rul. 2021-6). 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 15 days of April.

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Tax Glossary

Deferred compensation

A portion of earnings withheld by an employer or put into a retirement plan for distribution to the employee at a later date. If certain legal requirements are met, the deferred amount is not taxable until actually paid, for example, after retirement.

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