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