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U.S. Interest Rates on Overpaid and Underpaid Tax Increased for Q1 2023 — Orbitax Tax News & Alerts

The U.S. IRS has announced the interest rates for overpaid and underpaid tax for the calendar quarter beginning 1 January 2023, which are increased from the previous quarter due to an increase in the federal short-term rate. The rates are 7% for both overpayments and underpayments by individuals, and 6% and 7% for corporate overpayments and underpayments, respectively. The rate for corporate overpayments exceeding USD 10,000 in a tax period is 4.5% on the portion exceeding that amount, and the rate for large corporate underpayments exceeding USD 100,000 is 9%.

Revenue Ruling 2022-23, which includes the new interest rates and past rates, will be published in Internal Revenue Bulletin 2022-51 of 19 December 2022.