Interest Rates for Q3 2021

The Internal Revenue Service announced that interest rates will remain the same for the calendar quarter beginning July 1, 2021.

The rates will be:

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

For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus 3 percentage points.

For corporations, the underpayment rate is the federal short-term rate plus 3 percentage points and the overpayment rate is the federal short-term rate plus 2 percentage points. The rate for large corporate underpayments is the federal short-term rate plus 5 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.