IRS announced that 2020 Interest rates will decrease for the third quarter of 2020

On June 4, 2020, IRS announced that interest rate will decrease for the calendar quarter beginning July 1,2020. Interest rate is determined on a quarterly basis.

The rates will be

- 3% for overpayment (2% in the case of a corporation)

- 0.5 for portion of a corporate overpayment exceeding $10,000

- 3% for underpayments; and

- 5% for large corporate underpayment.

For taxpayer other than corporations, the overpayment and underpayment rate is the federal short term rate plus 3%.