Interest Rates To Stay The Same For First Quater of 2022

Interest rates will remain unchanged for the calendar quarter beginning January 1, 2022, according to the Internal Revenue Service. The following are the rates:

Overpayments are subject to a 3% penalty (two (2) percent in the case of a corporation), 0.5 percent for the amount of a corporate overpayment exceeding $10,000, underpayments are subject to a 3% penalty, and big corporate underpayments are subject to a 5% penalty.
The rate of interest is calculated quarterly under the Internal Revenue Code. The overpayment and underpayment rate for taxpayers who are not companies is the federal short-term rate + 3 percentage points.

In most cases, the underpayment rate for a corporation is equal to the federal short-term rate plus three percent. and the overpayment rate is equal to the federal short-term rate + 2%. The federal short-term rate + 5 percentage points is applied to substantial business underpayments. The federal short-term rate plus one-half (0.5) of a percentage point applies to the portion of a corporate overpayment of tax exceeding $10,000 for a taxable period.