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:
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%).
A 12-month period ending on the last day of any month other than December. Partnerships, S corporations, and personal service corporations are limited in their choice of fiscal years and face special restrictions.