IR-2022-206: Interest rates increase for the first quarter of 2023

Internal Revenue Service (IRS) sent this bulletin at 11/29/2022 02:06 PM EST

IRS Newswire

November 29, 2022

Issue Number: IR-2022-206

Inside This Issue

Interest rates increase for the first quarter of 2023

WASHINGTON — The Internal Revenue Service today announced that interest rates will increase for the calendar quarter beginning Jan. 1, 2023.

For individuals, the rate for overpayments and underpayments will be 7% per year, compounded daily, up from 6% for the quarter that began on October 1. Here is a complete list of the new rates:

7% for overpayments (payments made in excess of the amount owed), 6% for corporations.
4.5% for the portion of a corporate overpayment exceeding $10,000.
7% for underpayments. (taxes owed but not fully paid)
9% for large corporate underpayments.

Under the Internal Revenue Code, 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 (0.5) of a percentage point.

The interest rates announced today are computed from the federal short-term rate determined during October 2022. See the revenue ruling for details.

Revenue Ruling 2022-23 announcing the rates of interest, is attached and will appear in Internal Revenue Bulletin 2022-51, dated Dec. 19, 2022.

Thank you for subscribing to the IRS Newswire, an IRS e-mail service.

If you know someone who might want to subscribe to this mailing list, please forward this message to them so they can subscribe.

This message was distributed automatically from the mailing list IRS Newswire. Please Do Not Reply To This Message.

Update your subscriptions, modify your password or email address, or stop subscriptions at any time on your Subscriber Preferences Page. You will need to use your email address to log in. If you have questions or problems with the subscription service, please contact subscriberhelp.govdelivery.com.

This service is provided to you at no charge by the Internal Revenue Service (IRS).

IR-2022-206: Interest rates increase for the first quarter of 2023

News Essentials

The Newsroom Topics

IRS Resources

Issue Number: IR-2022-206

Inside This Issue