March 2, 2021 | Blog
The IRS has announced (Rev. Rul. 2021-6) the interest rates for taxpayer underpayments and overpayments for the second quarter of 2021:
• 3% for overpayments [2% in the case of a corporation];
• an additional 0.5%for the portion of a corporate overpayment exceeding $10,000;
• 3% for underpayments; and
• 5% for large corporate underpayments.
These rates apply quarter by quarter. If you have a tax debt that accrues interest over multiple quarters, the rate used to accrue the interest may be different for each quarter. Likewise, the rate for refunds is redetermined quarterly.
The 3% underpayment rate also applies for computing penalties for underpayment of estimated tax.
A "large corporate underpayment" is one that exceeds $100,000.
Related: Tax Reduction, Tax Debt Relief and More: How IRS Controversy Can Help.
This is a roundup of tax news and opinion. Any opinions expressed or implied are those of the author and not necessarily those of Eide Bailly. Opinions found in linked items are those of the authors of the linked item, not of your bloggers or of Eide Bailly. “$” means link may be behind a paywall. Items here do not constitute tax advice.