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.