The Internal Revenue Service ("IRS") announced that interest rates will remain the same for the calendar quarter beginning January 1, 2021. The rates will be:
3.0% for overpayments, (2% percent in the case of a corporation);
0.5% for the portion of a corporate overpayment exceeding $10,000;
3.0% percent for underpayments; &
5.0% percent for large corporate underpayments.
Under the Internal Revenue Code ("IRC") , the rate of interest is determined on a quarterly basis. For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus 3%.
The interest rates announced today are computed from the federal short-term rate determined during October 2020 to take effect November 1, 2020, based on daily compounding.
For any questions or concerns, please contact the Tax Attorneys at Fazzio Law, we are in your corner!