The IRS announced on June 4 that interest rates will decrease for the 3rd calendar quarter starting July 1. The rates will be 3% for overpayments (2% for a corporation), 0.5% for the portion of a corporate overpayment exceeding $10,000, 3% for underpayments, and 5% for large corporate underpayments. Under the Internal Revenue Code, the rate of interest is determined on a quarterly basis. For non-corporate taxpayers, the overpayment and underpayment rates are the federal short-term rate plus 3 percentage points. These interest rates are computed from the federal short-term rate determined during April to take effect May 1, based on daily compounding. (Rev. Ruling 2020-13)
