Interest rates – 4th Quarter 2022

IR-2022-150 – The IRS announced that interest rates will increase for the fourth quarter of 2022.

The rates will be:

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

Taxpayers other than corporations: The overpayment and underpayment rate is the federal short-term rate plus 3 percentage points.

Corporations: The underpayment rate is the federal short-term rate plus 3 percentage points, and the overpayment rate is the federal  short-term rate plus 2 percentage points. The rate for large corporate underpayments is the federal short-term rate plus 5 percentage points, The rate on the portion of a corporate overpayment of tax exceeding $10,000 for taxable period is the federal short-term rate plus one-half of a percentage point.

Section 6621 of the Internal Revenue Code establishes the interest rates on overpayments and underpayments of tax.