October 11, 2021 1:50 am

IRS Interest Rates Unchanged for Q4 2021

Despite indications of increased inflation, the interest rates on overpayments and underpayments are unchanged from the second quarter of 2021 (Rev Rul. 2021-17). The rates for the fourth quarter of 2021 beginning on October 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
Tax Glossary

Return of capital

A distribution of your investment that is not subject to tax unless the distribution exceeds your investment.

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