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IRS Penalty & Interest Rates

IRS interest rates will remain unchanged for the calendar quarter beginning April 1, 2021. The rates will be:

  • 3% for overpayments (2% in the case of a corporation);
  • 0.5% for the portion of a corporate overpayment exceeding $10,000;
  • 3% for underpayments; and
  • 5% for large corporate underpayments.

For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus 3 percentage points. This rate is determined by the IRS on a quarterly basis.

Year Qtr 1
1/1 - 3/31
Qtr 2
4/1 - 6/30
Qtr 3
7/1 - 9/30
Qtr 4
10/1 - 12/31
2021 3% 3%
2020 5% 5% 3% 3%
2019 6% 6% 5% 5%
2018 4% 5% 5% 5%
2017 4% 4% 4% 4%
2016 3% 4% 4% 4%
2015 3% 3% 3% 3%
2014 3% 3% 3% 3%
2013 3% 3% 3% 3%
2012 3% 3% 3% 3%
2011 3% 4% 4% 3%
2010 4% 4% 4% 4%
2009 5% 4% 4% 4%
2008 7% 6% 5% 6%
2007 8% 8% 8% 8%
2006 7% 7% 8% 8%
2005 5% 6% 6% 7%
2004 4% 5% 4% 5%
2003 5% 5% 5% 4%
2002 6% 6% 6% 6%
2001 9% 8% 7% 7%
2000 8% 9% 9% 9%