The IRS has recently announced that the interest rate charged to individual taxpayers and corporations for the underpayment of taxes will remain the same for third quarter of 2021. The rates will be three (3%) percent for individual taxpayers and five (5%) percent for corporations.
Under the Internal Revenue Code the IRS is required to determine and set interest rates on a quarterly basis. The rates are set by statute and are based on the federal short term interest rate.
Taxpayers that owe the IRS as a result of failing to pay taxes or paying less than the total are subject to interest on the tax amount due as well as penalties. Beige Law can help you address your tax issues and help keep you from being overwhelmed with interest and penalties.