IRS Second Quarter Interest Rates 2020; The Internal Revenue Service (IRS) announced its taxpayers in United States that the interest rates will remain the same for the second quarter of the year 2020. It means that for the calendar quarter beginning April 1, 2020, all taxpayers throughout USA will face the similar interest rates from IRS as that of the first quarter of current year. According to the IRS, the interest rates will be as follows:
- 7% interest rate for large corporate underpayments.
- 5% interest rate for other underpayments.
- 5% interest rate for over payments (while 4% interest rates in the case of a corporation).
- 5% interest rate for the portion of a corporate over payment more than $10,000.
You can also check the interest rates for 1st quarter of 2020, which were similar to that of the second quarter. To get more details on what is the current interest rate in the US or what is the US fed rates in your state, book an appointment with Black Ink today.
Interest Rates for 2nd Quarter of Year 2020:
- The rate of interest is determined on a quarterly basis under the Internal Revenue Code of USA.
- Specifically in the case of taxpayers other than corporations, the over payment as well as underpayment rate is the federal short-term rate in addition to 3 percentage points.
- In the case of a corporation, the underpayment rate is comprised of the federal short-term rate in addition to 3 percentage points.
- In the case of a corporation, the over payment rate is comprised of the federal short-term rate in addition to 2 percentage points.
- In the case of large corporate, the rate for underpayments is the federal short-term rate in addition to 5 percentage points.
- The interest rate on the portion of a corporate over payment of tax exceeding $10,000 for a taxable period is comprised of the federal short-term rate in addition to one-half (0.5) of a percentage point.
- Must note that these interest rates are calculated from the federal short-term rate determined during January 2020, to be effective from February 1, 2020, on the basis of daily compounding.
- For our readers’ guidance, we are attaching Revenue Ruling 2020-7 (PDF) that contains complete details on the rates of interest in the United States for 2020 for the second quarter.