Home ยป IRS interest rates increase for Q4

IRS interest rates increase for Q4

The interest rates the Internal Revenue Service uses will go up for the quarter beginning Oct. 1, the agency said.

The rates will be:

  • 6% for overpayments (5% in the case of a corporation);
  • 3.5% for the portion of a corporate overpayment exceeding $10,000;
  • 6% for underpayments; and,
  • 8% for large corporate underpayments. 

The rates are determined quarterly.
For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus three percentage points. Generally, in the case of a corporation, the underpayment rate is the federal short-term rate plus three percentage points and the overpayment rate is the federal short-term rate plus two percentage points.

The rate for large corporate underpayments is the federal short-term rate plus five 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) a percentage point.

The latest rates are computed from the federal short-term rate determined during July 2022.

Revenue Ruling 2022-15 announcing the rates will appear in Internal Revenue Bulletin 2022-35, dated Aug. 29.

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