The Internal Revenue Service today announced that interest rates will increase for the calendar quarter beginning Oct. 1, 2022.
For individuals, the rate for overpayments and underpayments will be 6% per year, compounded daily, up from 5% for the quarter that began on July 1. Here is a complete list of the new rates:
- 6% for overpayments [3.5% for corporations].
(payments made in excess of the amount owed) - 5% for the portion of a corporate overpayment exceeding $10,000.
- 6% for underpayments. (taxes owed but not fully paid)
- 8% for large corporate underpayments.
Under the Internal Revenue Code, the rate of interest is determined on a quarterly basis. For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus 3 percentage points.
Generally, for a corporation, 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 a taxable period is the federal short-term rate plus one-half (0.5) of a percentage point.
The interest rates announced today are computed from the federal short-term rate determined during July 2022.
When asked whether he would prefer to underpay his taxes and pay the rest later, one US citizen told reporters, “I have absolutely no interest in that arrangement, even if the IRS DOES have some interest in that arrangement.”
When asked if the IRS would prefer that this aforementioned citizen overpay his taxes, an IRS official told reporters, “We have absolutely no interest in him doing that, even if he DOES have some interest in doing that.”
When both parties were asked whether they would prefer that the individual pay the exact amount he owes, both parties said: “None of us has any interest in that, but maybe it makes the most sense. What the heck! Let’s do it!”
My name is Doris Sims and I am still waiting for my tax return since January. Can someone please help me figure out why? I didn’t get any mail from them so I’m assuming nothing was wrong with it.
https://www.irs.gov/advocate/local-taxpayer-advocate
My name is David Ruiz & I would also like to know when I’m going to receive my tax return? I’ve been waiting since Feb. I keep check the app& nothing’s changed. It says my application is still being processed.
I am still waiting on mine also
People need to realize that tax returns will never happen again and this year was a huge test to see if Americans would roll over on that. I guarantee you that tax season will come and everyone including myself will pay their taxes again have never receiving their tax return from this year.
My name is Paula CRAWFORD and I’m still waiting for my Amended taxes return since March and cannot get No Information what’s really going on
I’m still waiting for my refund since February 28 hopefully and they give me interest for everything it’s this time that I’ve waited