Tax News: IRS Interest Rate Fourth Quarter 2020

The Internal Revenue Service ("IRS") announced that interest rates will remain the same for the calendar quarter beginning October 1, 2020. The rates will be: 

• 3% for overpayments (2% in the case of a corporation);
• 0.5% for the portion of a corporate overpayment exceeding $10,000;
• 3% percent for underpayments; and
• 5% percent for large corporate underpayments.

Under the Internal Revenue Code, the rate of interest is determined on a quarterly basis.

Revenue Ruling 2020-18 (PDF), announcing the rates of interest, is attached and will appear in Internal Revenue Bulletin 2020-39, dated September 21, 2020.

For any questions or concerns, please contact the Tax Attorneys at Fazzio Law, we are in your corner!