Interest Rates for Q1 2022

The Internal Revenue Service announced that interest rates will remain the same for the calendar quarter beginning January 1, 2022.

IRS tax guidanceThe rates will be:

  • 3% for overpayments (2% in the case of a corporation),
  • 5% for the portion of a corporate overpayment exceeding $10,000,
  • 3% for underpayments and
  • 5% for large corporate underpayments.

For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus 3 percentage points.

For corporations, 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.

Join Our Newsletter

Sign up to receive exclusive newsletters with the latest information affecting you and your organization.

Posted in

SHARE THIS POST