The IRS today released an advance version of Rev. Rul. 2020-13 that provides the rates of interest with regard to tax overpayments and tax underpayments for the calendar quarter beginning July 1, 2020. The rates of interest will decrease for the third quarter 2020.
Rev. Rul. 2020-13 [PDF 292 KB] lists the interest rates for the calendar quarter beginning July 1, 2020, as follows:
Read a related IRS release—IR-2020-113
For taxpayers (other than corporations), the overpayment and underpayment rate is the federal short-term rate plus three (3) percentage points.
Generally, in the case of a corporation, the underpayment rate is the federal short-term rate plus three (3) percentage points, and the overpayment rate is the federal short-term rate plus two (2) percentage points. The rate for large corporate underpayments is the federal short-term rate plus five (5) percentage points. The rate on the portion of a corporate overpayment of tax exceeding $10,000 for a tax period is the federal short-term rate plus one-half (0.5) of a percentage point. Pursuant to Rev. Rul. 2020-11 (effective May 1, 2020) the federal short-term rate, rounded to the nearest full percent, is 0%.
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.