May 27, 2021
Rev. Rul. 2021-10 Determination of Rate of Interest announced that interest rates will remain the same for the calendar quarter beginning July 1, 2021.
The rates will be:
3 percent for overpayments (2 percent in the case of a corporation),
0.5 percent for the portion of a corporate overpayment exceeding $10,000,
3 percent for underpayments and
5 percent for large corporate underpayments.
The rate of interest is determined on a quarterly basis.
For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus 3 percentage points.
In the case of a corporation, 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 rate for large corporate underpayments is the federal short-term rate plus 5 percentage points.
The rate on the portion of a corporate overpayment of tax exceeding $10,000 for a taxable period is the federal short-term rate plus one-half (0.5) of a percentage point.
The interest rates are computed from the federal short-term rate determined during April 2021 to take effect May 1, 2021, based on daily compounding.
Revenue Ruling 2021-10 will appear in Internal Revenue Bulletin 2021-25, dated June 21, 2021.