March 4, 2022
irs interest rates

Beginning April 1, 2022, the IRS will raise 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 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.

Download the Optima® TAX APP to file an extension for free and get more time to file your taxes this season.