IRS interest rates increase for the third quarter of 2022

On May 20, 2022 the Internal Revenue Service announced that interest rates will increase for the calendar quarter beginning July 1, 2022. The revised rates are as follows: 

  • 5% for overpayments (4% in the case of a corporation).
  • 2.5% for the portion of a corporate overpayment exceeding $10,000.
  • 5% for underpayments.
  • 7% for large corporate underpayments.¬†

This is the second straight quarter where we have seen an increase in the underpayment rate, which had remained at 3% for individual taxpayers from July 1, 2020 March 31, 2022.

If you are not current with estimated tax payments, this may be a good opportunity to review changes to your income and revise your plan for estimated tax payments.

Revenue Ruling 2022-11 announcing the rates of interest will appear in Internal Revenue Bulletin 2022-23, dated June 6, 2022.