The Internal Revenue Service announced that the interest rates they charge and pay will go up for the quarter beginning October 1, 2022.  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.