Internal Revenue Service (IRS)

Interest rates remain the same in Q4

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

The Internal Revenue Service (IRS) has announced that interest rates will remain the same for the fourth quarter of the year, beginning October 1, 2021. 

It confirmed 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. 

For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus three percentage points.

Generally, the underpayment rate is the federal short-term rate plus three percentage points and the overpayment rate is the federal short-term rate plus two percentage points. 

In addition, the rate for large corporate underpayments is the federal short-term rate plus five percentage points. 

The rate on the portion of a corporate overpayment of tax exceeding $10,000 for a taxable period is the federal short-term rate plus one-half (0.5) of a percentage point.

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