They set new rates every quarter per federal code.
As of Friday, April 1, interest rates on amounts due to the Internal Revenue Service will increase for the quarter. The IRS said the increase could have important consequences for late tax filers.
Under the Internal Revenue Code, the IRS sets new rates every quarter. The new rate will rise to 4 percent for overpayments and 3 percent for corporations, 1.5 percent for the portion of a corporate payment exceeding $10,000, 4 percent for underpayments, and 6 percent for corporate underpayments.
For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus 3 percentage points.
American taxpayers owe interest on any unpaid tax from the due date of the return until the payment date. Interest is compounded daily. Individuals also accrue interest on late-filing penalties.
The filing due date will end April 18 this year because Washington, D.C. is celebrating Emancipation Day on the usual deadline of April 15.
As of last week, the IRS has issued more than 45 million refunds worth a collective $152 billion.
As the Lord Leads, Pray with Us…
- For wisdom for Commissioner Rettig as he oversees IRS operations.
- For IRS officials and personnel as they continue to catch up on the tax return backlog from the pandemic.
- For discernment the president and his economic advisors as federal spending continues to increase.
Sources: IRS.gov, Washington Examiner
