The Internal Revenue Service recently announced the increase in interest rates for the coming third quarter or 2022 which begins on July 1, 2022.
Whether you owe taxes or made an overpayment will determine if this is welcome news or not.
For individuals the IRS interest rates will be increasing to 5% for overpayments and underpayments. For corporations the overpayment rate will be 4% (2.5% for amounts of $10,000) and 7% for underpayments. Simply put, if you owe taxes that tax debt will be increasing due to the increased interest rates.
The interest rate charged by the IRS is tied to the Federal short term rate which is on the rise. If you now taxes to the IRS no more than ever you should address that tax issue once and for all. The attorneys at Beige Law, PLLC are available to help you do just that.