US Interest rates on tax overpayments (i.e. tax refunds) and tax underpayments (i.e. tax assessments and late tax payments) will remain the same for the first calendar quarter of 2022 (i.e. 1 January 2021 through 31 March 2022).
The US Internal Revenue Service (IRS) issued Revenue Ruling 2021-24 to announce the interest rates for the new quarter, together with an accompanying News Release (IR-2021-234), dated 23 November 2021.
The interest rates for the first quarter of 2022 are as follows:
- 3% for non-corporate overpayments;
- 2% for corporate overpayments up to USD 10,000;
- 0.5% for the portion of corporate overpayments in excess of USD 10,000;
- 3% for non-corporate and corporate underpayments (other than large corporate underpayments); and
- 5% for large corporate underpayments (i.e. underpayments in excess of USD 100,000).
Revenue Ruling 2021-24 also includes:
- interest factors for daily compound interest for an annual rate of 0.5% (Appendix A); and
- tables including overpayment and underpayment interest rates for prior periods.
Revenue Ruling 2021-24 will be included in the Internal Revenue Bulletin (IRB) 2021-50, dated 13 December 2021.