Case: IRS Used Incorrect Underpayment Interest Rate in Distribution Request (Bankr. D.D.C.) (IRC §6621)

IRS, in its request for distribution, used incorrect interest rate in calculating interest owed on tax liability, a bankruptcy court held. For payment due July 2, 2020, the IRS used a 5% interest rate when the court noted that as of July 1 (the beginning of the third quarter), the IRS itself lowered the interest rate to 3% in Revenue Ruling 2020-13. The court, however, decided that the higher rate will not impact the amount paid if done before the start of the third quarter. [Webster v. Walker (In re Barkats), No. 14-00053 (Bankr. D.D.C. June ...