7Newswire
24 Dec 2022, 16:10 GMT+10
The IRS recently announced that their interest rates will increase in the first quarter of 2023. The rates are determined on a quarterly basis. Optima Tax Relief provides details on the new rates beginning January 1, 2023.
The rate for overpayments and underpayments will increase from 6% to 7% per year, compounded daily. Taxpayers receive an overpayment credit when their tax payments exceed what they owe. If a taxpayer owes taxes but does not pay the balance in full, the remaining balance will be charged underpayment interest.
The rate for overpayments is 6% for corporations. If the corporate overpayment exceeds $10,000, the portion that exceeds $10,000 will receive interest at a rate of 4.5%. However, if a corporation underpays their taxes, they will be charged interest on the balance due at a rate of 9%.
Taxpayers who are still owed a tax refund for 2022 may take special interest in the rate increase. Now, if a taxpayer is still missing their tax refund, they will receive 7% interest from the IRS, beginning in January 2023. The IRS adds interest to a tax refund if it takes more than 45 days after the filing deadline to process a return and refund. There were still over 3 million unprocessed individual 2022 tax returns as of November 18, 2022. This does not include unprocessed returns from the previous tax years. While all of this sounds positive, taxpayers should expect to pay taxes on the interest.
On the other hand, if a taxpayer owes a balance, their debt will become more expensive beginning in the new year. This makes it a more critical time for taxpayers to ensure that their tax balances are paid in full and on time. Now more than ever, negligence can be very costly to taxpayers with interest rate increases accompanied by the regular penalties for underpayment.
Get a daily dose of London Mercury news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to London Mercury.
More InformationShe tells a court everything seemed normal in the hours before the baby was killed. ...
Alice Stones died when she was attacked by the family pet in a garden in Milton Keynes last week. ...
Paul King, 63, is jailed for eight years for attacking a 16-year-old boy in a park in Stevenage. ...
Ukraine's president gave the speaker of the House of Commons a helmet, as he visited Parliament to address politicians. ...
There are fears the 30 weekly allowance is not enough amid the cost of living crisis. ...
Former Metropolitan Police officer David Carrick has been jailed for a minimum of 30 years. ...
TORRANCE, California: Due to un-repaired Takata air bag inflators that can explode and unleash potentially deadly metal shrapnel inside vehicles, ...
NEW YORK, New York - After a day of major gains, U.S. stock markets fell sharply Wednesday underscoring volatility as ...
CAPE CANAVERAL, Florida: In a tweet this weekend, Elon Musk said that SpaceX may attempt a Starship rocket system launch ...
LONDON, England: The Society of Motor Manufacturers and Traders has reported that new car registrations in the UK rose for ...
TAIPEI, Taiwan: After the end of COVID-19 disruptions in China, Taiwan's Foxconn, the world's largest contract electronics maker and major ...
NEW YORK, New York - Stocks ended sharply higher on Tuesday following mixed comments by Federal Reserve Chairman Jerome Powell.Powell ...