 internal revenue service IRS tax news IRS interest rates increase for the third quarter of 2022 might that be a consequence of inflation no transitory IR 2022-107 may 20th 2022 Washington the internal revenue service today announced that interest rates will increase for the calendar quarter beginning July 1st 2022 the rates will be 5% for overpayments 4% in the case of corporation 2.5% for the portion of a corporate overpayment exceeding $10,000 5% for underpayments 7% 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 term rate plus one half or 0.5 of a percentage point. The interest rates announced today are computed from the federal short-term rate determined during April, 2022 to take effect May 1st, 2022, based on daily compounding. Revenue ruling 2022-11, there's a link to that here, announcing the rates of interest is attached and will appear in Internal Revenue Bulletin 2022-23, dated June 6th, 2022. There's a link to that revenue ruling here and there'll be a link to this in the description. Transitory.