global Tax IRS Increases Interest Rates for Q4 August 30, 2022 Disclaimer This post was published more than two years ago, and some information may now be out of date. We want to help you make the best decisions possible—please connect with your advisor or check out our latest resources for the most current guidance. Starting October 1, 2022, interest rates will increase for the fourth quarter of 2022. Here’s what you need to know. Attention taxpayers…interest rates are increasing as of October 1, 2022. We dive into the new rates here. What are the new rates? 6% for overpayments (5% for corporations)3.5% or the portion of a corporate overpayment exceeding $10,0006% for underpayments 8% for large corporate underpayments What are overpayments? These are payments made in excess of the amount owed. What are underpayments? These are taxes owed that are not fully paid. What are the overpayment and underpayment rates? For corporations, the underpayment rate is generally the federal short-term rate plus 3 percentage points. The overpayment rate for corps is the federal short-term rate plus 2 percentage points. For large corporations, the underpayment rate is the federal short-term rate plus 5 percentage points. For the portion of a corporate overpayment exceeding $10,000, the rate is the federal short-term rate plus ½ of a percentage point. The overpayment and underpayment rates for taxpayers other than corporations is the federal short-term rate plus 3 percentage points. Questions? We can help.
