IRS interest rates on income tax underpayments and overpayments will remain the same for the second quarter of 2020, the IRS recently announced.
Under the Internal Revenue Code, the rate of interest is determined on a quarterly basis. For taxpayers other than corporations, the overpayment and underpayment interest rate is a federal short-term rate plus three percentage points.
Generally, in the case of 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 interest rates took effect Feb. 1, 2020.