IRS Interest Rates Unchanged for Q4 2020

The IRS has announced that the interest rates applicable to overpayments and underpayments of federal taxes are the same in the fourth quarter of 2020 as they were in the third quarter of 2020 (Rev. Rul. 2020-18). The rates are:

• 3% for overpayments by individuals and other noncorporate taxpayers
• 2% for overpayments by corporations
• 0.5% for the portion of a corporate overpayment exceeding $10,000;
• 3% for underpayments; and
• 5% for large corporate underpayments