IRS Interest Rates for Q3 2021

Despite concerns about inflation, the interest rates on overpayments and underpayments are unchanged from the second quarter of 2021 (Rev Rul. 2021-10). The rates for the third quarter of 2021 beginning on July 1 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

Note: The IRS also announced the blended rate for 2021, which is used to figure imputed interest on below market demand loans outstanding for the entire year (Rev. Rul. 2021-12). The blended rate is 0.13% (in contrast to last year’s rate of 0.89%).