As of April 1, 2022, the IRS raised its interest rates for the quarter. These changes apply to quarterly taxpayers, such as corporations and self-employed filers.
The IRS announced the new rates as follows:
- 4% for overpayments (3% in the case of a corporation)
- 1.5% for the portion of a corporate overpayment exceeding $10,000
- 4% for underpayments; and
- 6% for large corporate underpayments
How higher IRS interest rates affect your liability
Liabilities accrue interest over time, so it’s likely that an outstanding balance will be affected if you are not in compliance with the IRS. The interest rate would be the short-term rate plus 3% on your liability.
For assistance with your tax liability, give us a call at (800) 536-0734 for a free consultation.