Attention FAE Customers:
Please be aware that NASBA credits are awarded based on whether the events are webcast or in-person, as well as on the number of CPE credits.
Please check the event registration page to see if NASBA credits are being awarded for the programs you select.

IRS Announces Increased Interest Rates for Second Quarter of 2022

By:
Ruth Singleton
Published Date:
Feb 24, 2022

GettyImages-174879501 IRS Internal Revenue Service

The IRS announced that it will increase interest rates for the second quarter of 2022, beginning April 1. The rates will be as follows: 

• 4 percent for overpayments (3 percent in the case of a corporation); 

• 1.5 percent for the portion of a corporate overpayment exceeding $10,000; 

• 4 percent for underpayments; and 

• 6 percent for large corporate underpayments.

 The interest rates for the current calendar quarter, beginning Jan.1, 2022, are: 

• 3 percent for overpayments (2 percent in the case of a corporation), 

• 0.5 percent for the portion of a corporate overpayment exceeding $10,000, 

• 3 percent for underpayments, and 

• 5 percent for large corporate underpayments.  

Under the Internal Revenue Code, the IRS determines the rate of interest is determined on a quarterly basis. For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus 3 percentage points. 

Generally, in the case of a corporation, 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 of a percentage point. 

The interest rates were computed from the federal short-term rate determined during January to take effect Feb. 1, based on daily compounding. 

Revenue Ruling 2022-05 PDF announcing the rates of interest, will appear in Internal Revenue Bulletin 2022-10, dated March 7, 2022. 

Click here to see more of the latest news from the NYSSCPA.